Evolution Advisors is an opportunistic investor within the lower middle market. And will invest in both private and public companies. We creatively approach each investment with a focus on understanding management’s unique
requirements enabling us to properly tailor each investment.

THE GENERAL PARAMETERS FOR OUR INVESTMENTS IN PRIVATE COMPANIES ARE:

PORTFOLIO COMPANY SIZE
Revenues $5 million and higher.
EBITDA $2 million and higher.
Enterprise Value $10 million and higher.

INDUSTRY FOCUS AND COMPANY TYPE
We will look at companies varied across a wide range of sectors and prefer growth issuers and generally will
not invest in start-up companies or those operating in oil and gas exploration or real estate.

TRANSACTION SIZE
$5 – 15 million and higher.

SECURITY TYPES
We invest in equity and equity-linked securities, including convertible debt and debt with warrants.

WHAT WE LOOK FOR:

As we evaluate a company to invest in, Evolution considers the following factors:

THE EXPERIENCE, PASSION AND VISION OF MANAGEMENT
Do they have a history of success and can they meet the challenges of launching a large-scale company?
How much capital have they invested?

MARKET OPPORTUNITY
What is the market size and what share can be captured?
How fast is the market growing and can the company grow faster than the market?

QUALITY AND DEFENSIBILITY OF THE INTELLECTUAL PROPERTY
Whether it is technology or trade secrets, how defensible is the company’s IP and can others replicate the model?
Do the founders have the knowledge and experience to bring it to market and keep it proprietary?

VALUE PROPOSITION: WHAT IS THE VALUE TO THE CUSTOMER
What problem does this company solve?
How will the solution/technology/business process solve it?
How will its value be communicated to the prospective customer and marketed?

CAPITAL STRUCTURE AND FINANCING RISK
What is the current burn rate and how much capital will the company need to hit its infection point?
Will the company be adequately capitalized after our investment and how soon will they need to return to the market?

HOW CAN EVOLUTION ADD VALUE
What can we or our partner do to accelerate the growth of the business using our relationships?