We focus on exploiting on two main market inefficiencies:

• Smaller public companies are undervalued for a variety of factors: e.g., breakdown of historic infrastructure, e.g., lack of investment bank and analyst sponsorship; too small for institutions, including insufficient float; inability to scale to optimize operations; costs of being public, etc, and
• Thousands of quality private technology companies, many with venture capital backing, face liquidity challenges including the inability to go public due to current market requirements for IPOs and difficulties in otherwise achieving any meaningful liquidity.

We invest our capital in carefully selected microCap public companies (generally between $25 and $250 million in market capitalization) after detailed due diligence and adoption of an agreed upon business plan that can grow these companies to higher levels of public market investment interest. The plan in most cases involves a strategic M&A process to acquire one or more companies to achieve scale and enhance product and technology offerings and/or distribution capabilities. daVinci assists each company with ideas and resources to help them achieve their growth plans.

We focus on technology sectors where we have depth of knowledge and experience and where significant structural changes and technology discontinuities are in play. Examples of these sectors include information services and technologies, electronic systems and medical diagnostics and devices.

Because we invest in public companies to help them to grow quickly in both size and market value, we can start realizing gains and liquidity earlier than most private equity and venture capital situations. Our exits may result from sales of entire companies, but typically will be through public market sales. These trading activities will be managed through an outsourced arm's length process (according to all applicable laws) that will follow our initial general directions/rules. In a number of cases orderly exits from our investment positions can begin as early as 12 months from the investment.