John Rabenhorst

Sentient Ventures invests in seed, early, and expansion-stage private companies using senior secured debt, mezzanine debt with warrants, subordinated debt with warrants, preferred stock and common stocks. They focus on several industries including enterprise software & services, communication software & services, Semiconductors, nanotechnology/MEMs and life sciences. The Sentient principals invest up to $1 million as individuals or as an angel investment group. Through their economic development-focused Whitecap Texas Opportunity Fund they invest $500,000 to $3.5 million. Through a joint venture with Emergent Technologies, Inc., they invest in university-based technologies with a focus on the University of Texas System. Investments range from $500,000 to $4 million. The Whitecap Texas Opportunity Fund focuses on information technology and life sciences. The fund does not invest in retail sales, real estate development, financial services (including insurance, banking or lending) and professional services provided by accountants, attorneys or physicians. They look for companies that are national or international in scope with a market size greater than $1 billion that are in growing markets that will allow the company's revenue to reach $100 million or more within 5 years. Sentient invests with a 36 month time horizon. They only consider investments in companies that have significant intellectual property or the equivalent that enables the company to maintain a long term competitive advantage. Portfolio companies must be headquartered in Texas or be able to relocate its headquarters and principal business operations to Texas within 90 days with the intention of remaining in Texas after the investment. Portfolio companies must not have more than 100 employees with at least 80% of their employees residing in Texas or with 80% of its payroll paid to Texas residents. Sentient's university-focused investments typically center on the life sciences but they also consider nanotechnology, bioinformatics and other convergence applications between information technology and biotechnology, alternative energy applications and chemical engineering. These ventures include seed and early-stage companies formed to commercialize technologies created, developed and/or owned by the university system. They should have significant and protectable intellectual property and should have received prior research grants greater than $2 million to $5 million. The technology should address multiple markets and there should be an existing market for at least one of the technology applications that can generate short-term cash flow. A portfolio company must also provide the potential for a half billion dollar annual revenue stream.