Investment Focus: Technology-Enabled Services

We invest in a wide range of technology-enabled services businesses and other businesses that have a recurring revenue business model and exhibit strong operating leverage. We invest in companies pursuing opportunity in the SaaS, Cloud Computing, Internet Infrastructure, Ad-Technology and Managed/Business Services sectors.

Contact a member of Our Team if you would like to learn more about how we partner with entrepreneurs to help them achieve their objectives.

SaaS

There remain significant opportunities to build horizontal SaaS applications with broad applicability. However, as software have matured, they have always segmented into verticals. The evolution of SaaS will be no different. We consider SaaS investments in a broad range of verticals including the following:

Payment and commerce
Information and data services
Marketing and customer life-cycle management
Human capital and performance management
Education
Healthcare

Cloud Computing

Cloud computing is the natural evolution of the delivery of information technology. Solutions previously delivered via hardware or on-premise software are now delivered as a service, enabling enterprise and small business purchasers of IT to consume them on a variable cost basis.

Infrastructure as a Service (IaaS)
Platform as a Service (PaaS)
Software as a Service (SaaS)
Cloud enablement
Big data/analytics
Hosting and managed services
Artificial intelligence

Internet Infrastructure

In an on-demand world, Internet infrastructure is the plumbing that makes the cloud, IT, media and Internet services used by businesses and consumers work reliably and on-time. As businesses and consumers use Internet-based services more and more, the infrastructure that powers it continues to grow, creating abundant opportunities for growth equity investment.

Unified communications and CaaS
Communications infrastructure
Internet infrastructure
eCommerce infrastructure
Content delivery infrastructure

Ad Tech

The means through which consumers access and consume information and media is ever-evolving and increasingly turning toward next-generation devices like tablets and smartphones. Marketers must adapt to this ever-changing landscape, creating the opportunity to create new services and re-invent existing ones that deliver content and enable marketers to reach their target audience with the right message at the right time.

Marketing Services
Advertising Delivery Infrastructure
Targeting, Data and Analytics
Mobile

Managed and Business Services

Business and enterprise customers are increasingly adopting managed services offerings as a way to outsource non core business functions to specialists.

Managed IT services
Business services

Target Profile

We are a growth equity firm. We invest exclusively in technology-enabled services businesses. We work with entrepreneurs whose businesses require between $3 and $10 million of capital to achieve their full potential. The companies that we finance have established a track record of financial performance, which typically includes:

Annualized Revenue Between $5 and $30 Million
The majority of run-rate revenue must be recurring in nature.
Organic Growth Rate in Excess of 20% Annually
We like to see a history of growth at or above 20% annualized.. We know that, if properly capitalized your business can grow even faster.

Attractive Unit Contribution Margins
We like unit contribution margins in excess of 50%, so that each additional customer you serve contributes to your profitability.
Operating At or Near Break-Even
You are walking the line between living within your means and reinvesting in growth.

Strategic Characteristics

All investors seek businesses that operate in large, growing markets with market leading products and “strong” management teams. We’re no different. But the opportunities that we pursue exhibit some unique characteristics.

Repeatable and Scalable Customer Acquisition Process
We look for businesses that understand the mechanics of growth. To us, generating growth isn’t a mysterious art, it’s a process.
Expert Entrepreneurs
We look for management teams with a through understanding of the sector in which they operate and have an infectious passion for building their businesses.

Recurring revenue business model
We invest exclusively in businesses with revenue that is recurring in nature. We focus on sectors that are “target rich” for this business model.
Profitable Business Fundamentals
We look for business models that are built to be profitable at a unit economic level and that have significant operating leverage. We work closely with management to model the economic drivers of their business, so that our mutual investment in growth yields results.

Transaction Structures

Growth stage businesses, leverage our capital to accelerate growth through scaling the rate of new customer acquisition, fortifying service delivery capabilities and expanding or enhancing their service offerings.

Growth Equity Investments
Your business is growing, but you need capital to grow faster. We’ll invest our capital and time to help you accomplish your goals.
Founder and Shareholder Liquidity
You’ve built a profitable business and you want to take it to the next level. But you may want to de-risk your personal balance sheet by selling a portion of your ownership.
Minority and Majority Transactions
We’re more focused on how much value your business can create than how much of it we own. Whether it is a minority or majority ownership transaction, our focus is on supporting you in executing your growth plan.

Our goal is to make the structure through which we invest work for the entrepreneurs we back. Our expertise in creating long-term strategic financing plans ensures that our entrepreneurs understand the long-term dilution and governance implications of raising growth capital before they commit to raising capital.

Investment Focus: Technology-Enabled Services

Target Profile

Annualized Revenue Between $5 and $30 Million

Organic Growth Rate in Excess of 20% Annually

Attractive Unit Contribution Margins

Operating At or Near Break-Even

Strategic Characteristics

Repeatable and Scalable Customer Acquisition Process

Expert Entrepreneurs

Recurring revenue business model

Profitable Business Fundamentals

Transaction Structures

Growth Equity Investments

Founder and Shareholder Liquidity

Minority and Majority Transactions

Contact Information

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