Welcome, M&A teams

About investment criteria, stages of startup funding, investment terms, internal and external investees

What are the criteria that the fund will look for in selecting investments?

What is VMS Venture’s investment criteria?


VMS Ventures will look for the following for your business venture:

  • A passionate team willing and able to build a great software product. 
  • A niche vertical market where Constellation Software operates.
  • Opportunity for $10MM in annual revenues within 5-10 years. 
  • A sponsoring Constellation Software business unit.
  • An earned secret- deep industry knowledge.
  • We are open to all stages of startup funding.


What investment terms will the fund offer a start-up?


Every investment will be looked at independently. However, in all cases:

  • The fund will never sell its stake. To monetize shares, the founders must sell to a Constellation Software operating group, receive dividends from profits, or through some extreme cases exit through an IPO. We will not allow exits to 3rd parties. 
  • The fund will be the lead investor. While it may not take a majority stake, the fund will always set the key terms.
  • The fund will require significant control of the board of the new company.


Will the fund focus on internal or external initiatives and what are the stages of startup funding?


The short answer is both. We expect most investments will be internal initiatives, drawn from existing CSI business units and employees. We are open to investing in and providing startup funding to external companies as well. We offer broadly the same terms and criteria for both sets of initiatives. We expect that internal opportunities will be in the earlier stages of startup funding, while external startups will tend to be later stages of the startup funding process. We are welcoming to all stages and ideas. Keep in mind that if there is an interesting startup funding opportunity, VMS Ventures wants to hear about it. If the company is in its later stages of startup funding, then it may be appropriate for us to look at a pitch deck or investment memo by the founding team. This will give us more background on the product, team, and opportunity. Giving this to us speeds up the startup funding process for all parties involved. These documents are a starting point- not a final pitch. 


What should I do if I find a lead that I think fits the requirements of the fund?


We are always grateful for high quality leads. If you have a lead that you think could meet the requirements of the fund, please email karl.schabas@vmsfund.com. Startup funding is an ever-changing landscape. If you believe that there is an interesting startup that does not necessarily meet all our criteria perfectly, we would still appreciate the lead. 

We will set-up a call with the founder and invite you to participate. Keep in mind that all startup funding and investments will require a sponsoring CSI business unit. So, leads from a vertical that you know well and where you know the relevant BUs within CSI are preferred.


Any further questions about startup funding, VMS Ventures, or our criteria should be sent to Karl: karl.schabas@vmsfund.com. (All information stays between you and Karl).



All of the frequently asked questions by & for M&A Teams.

Go to Q&A