Transaction types: we make growth capital investments in companies at a variety of stages including early-stage venture, but we generally avoid investments in pre-revenue businesses.
We look for manufacturers of proprietary designed, mission-critical components with potential to be disruptive from either a cost or performance perspective. We avoid manufacturers of capital equipment and instead favor companies with recurring demand drivers (e.g. replacement parts or consumables). We seek to add value by helping these companies commercialize their technologies and build attractive strategic assets.
An example of a past investment in this industry is a manufacturer of components for medical devices that used a proprietary design to reduce cost by 90% vs. the status quo.
This category includes SaaS businesses as well as traditional people-based business services. We look for companies providing critical recurring services for their customers with high gross margins and high customer switching costs. We look for businesses that are either addressing large “whitespace” opportunities in new markets or that have a defensible advantage against larger competitors in existing markets.
An example of a past investment in this industry is a provider of sales enablement software.
We look for companies that provide a functional recurring service for their customers with high gross margins and high customer switching costs. We avoid companies that rely on fashion-driven consumer preferences (e.g. entertainment, leisure, design). We look for businesses that are either addressing large “whitespace” opportunities in new markets or that have a defensible advantage against larger competitors in existing markets.
An example of a past investment in this industry is an early education company targeting mid-sized employers.
• Technologies / business models with a defensible advantage against the status quo
• Evidence of product-market fit (revenue and high growth/retention with existing customers), though we occasionally consider pre-revenue investments
• Very large addressable markets with a strong pipeline for growth
• Founders with deep domain expertise and intimate knowledge of the status quo in their industry
