Philosophy

We love to build market-leading companies that can stand the test of time.

Many of our companies have pioneered important new markets, meeting needs that others had not yet recognized. When pioneering new markets, startups may not find it possible to have fully developed business plans. Working with a compelling idea and entrepreneur to develop a plan is one of the best parts of our job. What we look for is real customer pain that requires a solution. Removing important sources of customer pain leads to big markets.

People are a critical part of the equation. We look for people with great ideas, relevant experience and the ability to rally resources around them. We work closely with entrepreneurs to build teams that complement their skills and expertise. We recognize great talent when we see it, and we foster that talent over the long term and across venues. Often, we have built several great businesses around a compelling leader at different times through his or her career.

As markets and technology platforms shift, great companies need to change with them. We conduct rigorous market analysis and pay careful attention to building world-class teams. Following these principles has helped Sutter Hill achieve great results over nearly four decades and has turned our portfolio companies into industry leaders for the long haul.

Fundamentally, we consider companies, not industry sectors, the right unit of analysis for the venture capital business. We base our funding decisions on microeconomics. We invest in companies that we think have significant long-term opportunities to create fast-growing and ultimately profitable businesses. We are not here to do quick "flips". While we have extensive experience in sectors like communications infrastructure, supply chain management and internet software, we do not limit our interests. We operate from one office, but we invest in all parts of the United States.

We believe venture investors should add value. By building teams, developing partnerships, and helping to shape strategies, we can accelerate a company's trajectory and change the odds of success.