Investment Criteria
We look for good companies that want to be great. What does your company need to meet its full potential? Our investment guidelines constitute a recipe for success. We have helped management teams put together the key ingredients to build “real” sustainable businesses.
Investment Criteria
Management
We look to partner with committed, energetic and scalable teams. The key word is “teams.” We have yet to meet a CEO who can build a serious company without a top notch team. We have extensive experience helping CEO’s find top talent to manage in high growth environments.
Operating History
We seek companies that have been in business for 3 to 10 years. Why? We always say “it’s amazing how little of durable value you can build in a year, but mind boggling what you can accomplish in three.”
Competitive Barriers
Are you building something that is differentiated in the market? Is it durable? Can you protect that advantage from competition? Do you have great technology, IP, know how, customer loyalty, brand, a sticky product, network effects or a first mover advantage? Pick at least one.
Revenue
We look for companies with a minimum of $10mm of run-rate revenue with key reference customers. You have proven the market demand, so let’s grow! Perhaps you have $100mm of revenue, but need expansion capital to take share and build profit. We can help.
Growth
Growth is important, but profitable growth is magic. Does your business have the prospect of attaining a sustained period of 20% or greater growth with the appropriate influx of capital? Can you grow into profit? If you are already profitable, can you increase your operating leverage to grow profit faster than revenue?
Profit
Profit is the ultimate determinant of survival (and value) in the crucible of corporate Darwinism. We look for companies that are profitable, or growing rapidly with a clear path to profitability in the near term. Do you know your costs and can you measure and track your core unit economics?
Whatever you are, be a good one.
– Abraham Lincoln
Target Sectors
Growing, High-Demand Technology-Enabled Markets including
-Cybersecurity
-IT Services
-Mobile Services
-Data Analytics
-E-Commerce
-SaaS
-Cloud Computing
Transaction Types
Expansion Financings
Growth Recapitalizations
Consolidation Strategies
Turnarounds
Target Size
We make investments of between $15mm and $35mm and can do larger investments of up to $150mm with partners.