DBL Equity Fund – BAEF II, L.P.

DBL Investors is a pioneer double bottom line venture capital firm created from the spin-out of the Bay Area Equity Fund I from JPMorgan in January of 2008. The firm’s “Double Bottom Line” investment strategy is to invest in companies that can deliver top-tier venture capital returns (First Bottom Line) while working with companies to generate positive social impact, including environmental and regional economic benefits (Second Bottom Line). Based in San Francisco, the firm invests in cleantech, IT, health care and sustainability companies in the western United States. The firm currently manages $225 million across two funds. The first fund (Bay Area Equity Fund I) closed at $75 million and began investing in 2004. The second fund (DBL Equity Fund – BAEF II) closed at $150 million and began investing in 2009. DBL Investors has grown from zero investments in 2003 to a cumulative 28 investments as of October 2011. The firm’s second bottom line focuses on four key metrics: job creation, workforce development, community engagement, and environmental stewardship. DBL Investors works closely with its portfolio companies in the area of siting companies in low-moderate income (LMI) areas or Enterprise Zones that have a positive impact on the local tax base in neighborhoods that have historically lacked investment capital.

Financial description

Fund II will be financing companies primarily in emerging growth industries or growth segments of mature industries. There are several risk factors common across most emerging growth company industries. Safeguards to protect investors’ capital are specific to each risk and fall in to the general categories of performing diligence and assessing the appropriate risk/return (reflected in price and terms) ahead of an investment, and, after an investment working with company management to monitor and address risks. Risk factors specific to Fund II’s strategy includes addressing competition risk, technology risk, emerging growth company risk, and financing risk. Competition risk. Emerging growth industries attract many entrants. Competition may come in the form of young companies or established large companies entering a new sector. Competition may have better technologies, management teams, relationships, or have more resources and financing. Technology risk. Some of our companies will be dependent on the success of their technology and are often in rapidly changing technology sectors. Such companies may face specific risks of product obsolescence or a technology that fails to work as it was intended. Another risk is in taking a successful prototype and engineering process to production level. Emerging growth company risk. Markets for emerging growth companies are often unproven, based on developing or anticipated trends in consumer demand.