ideal Investment Criteria
• Established business with a track record of growth and turnover of greater than £500k
• Unlisted trading business with an investment need between £250k – £2m
• Development / Growth capital.
what we invest in
Our favourite companies have developed with little or no outside funding and have often discovered a way to break out of traditional markets. The target company’s primary development and growth has been funded by internal cash flow using real customer revenues. The founders and early employees often forgo salary payments for equity in the company. This is often referred to as bootstrapping. We look to invest as these companies reach breakeven or a profitable performance level. Importantly, bootstrapped companies cannot afford to simply throw money at projects/problems. Consequently, they have a much more rational and less speculative approach to capital allocation, and we find this attitude continues even after they are funded. We look to provide the funding to move the company from a development stage to an accelerated growth cycle. Investing at this point in bootstrapped companies creates a portfolio whose returns are not contingent on a small number of investments performing extraordinarily, which is often the case for angel or venture capital.