INVESTMENT THESIS

Our Market research and our Partners’ combined sector expertise positions us to best support these up and coming tech sectors


Cyber Security

The Cyber Security market had a value of $22B in 2015 (Gardner). Security information and event management (SIEM) was the fastest-growing segment of the global security software market in 2015, with a remarkable 15.8 percent growth over 2014. The space continues to be attractive and is a growing “must spend” category for businesses. 1843 will leverage the depth and experience of Operating Partner Alison Andrews Reyes when evaluating and investing in companies in this space.


Enterprise Software

The Enterprise (or B2B) software market was $320 billion in 2014,(Gartner). M&A in the tech and software market was $55 billion in 2014. The M&A activity in the sector continues to grow, although Q2 2016 saw a marked decrease in valuations. Interest has moved from customer resource management (CRM) and supply chain management (SCM) to data analytics and artificial intelligence and required corporate services such as diversity and security ($75B market). Successful companies in this area must demonstrate low churn numbers and high customer life time value (LTV) driven by high customer engagement and proven return on investment (ROI) metrics.


Silver Tech

The “Silver Tech” market is driven by the largest consumer market in the world, urban adults over 60 years old. In the United States there are 108 million people over the age of 50 (AARP). The older consumer will make up 19% of world wide consumption; the largest group (McKinsey). Baby Boomers control 70% of the United States wealth or $7 trillion (AARP). Technical devices and software have not fully penetrated this market to date, creating a large market opportunity. Companies of interest in this space include devices and software aimed at improving the lives of the aging.