TEF is a true seed fund. We are always the initial investor, and with rare exceptions, our initial investments are measured in single digits. This results in significant upside potential for our founding entrepreneurs and favorable economic opportunity for our LPs.
We favor investing with serial TEF entrepreneurs or successful serial entrepreneurs who come highly recommended by members of our ecosystem. This approach reduces people risk as well as providing the Fund with a truly proprietary deal flow.
Most venture firms swing for the fences. Not us. We focus on getting our companies on base by developing successful products and services, attracting customers and generating revenue. Once those are in place, we know we will score.
We augment the founding team by drawing upon our ecosystem of successful entrepreneurs, experienced members of our venture consulting group and our skilled Venture Partners. All TEF stakeholders are members of the same team.
Active management, transparency, modest management fees and meaningful levels of personal commitment ensure that incentives for all stakeholder groups are aligned. Our business model also facilitates time-efficient operating decisions.
Our Managing Directors have each spent at least 20 years in business-to-business software. Forrester Research forecasts revenue associated with Cloud-based B2B to grow from $40 billion in 2012 to $160 billion in 2020, and TEF will be in the thick of this growth.
Cloud-based cognitive systems are designed to analyze structured and unstructured information in order to learn from their interactions with data and humans — essentially continuously re-programming themselves, just like the human brain.