Volition Capital principally invests in high growth, founder-owned technology companies.
We are a growth equity investor providing capital to founder-owned businesses that have aspirations for market leadership. The following are some of the characteristics that we look for in the companies we invest in:
Meaningful Founder Ownership: 20%+
We principally invest in companies where the founder(s) maintains a large ownership (20%+) in the company. Often times, the founder(s) may be the largest or majority shareholder in the company. We believe meaningful founder ownership creates immediate alignment with all shareholders - a key element of success.
Solid Revenue Base: $5 Million-$25 Million+
Our focus is on investing in great businesses, not just great concepts. We look for at least $5 million of quality revenue inclusive of a growing list of referenceable customers. Quality revenue is predictable, generates a high gross margin, and is diversified. We value companies that have proven that their sales model and technology can work at a smaller scale, but need the capital to expand more aggressively to prove it on a larger scale.
High Growth: 25%-100%+ growth
We are growth investors. Our companies are generally growing 25%+ at the time of our investment and are often among the fastest growing companies in their industry. We believe that few things validate a company’s position more than revenue growth and increasing market share. Many of our companies have shown a history of extended year-over-year revenue growth.
Capital Efficient: Near Break Even to Profitable
We prefer to invest in companies that don’t need external capital, but can benefit from taking it. Most companies have already demonstrated leverage in the business (growing revenues faster than expenses) and are on their way to being cash flow positive. We expect that barring expanded growth opportunities, our investment would be the last private capital required prior to reaching profitability.
Aspirations for Greatness
We are looking for companies that can be game changers. Our companies bring disruptive technologies and applications to substantial market opportunities.
Volition Capital is a growth investor that partners with founders to build market leaders.
We are flexible investors willing to tailor our investment to fit the needs of each company. The following are some of the general characteristics of most investments:
Investment Size: $5 Million - $40 Million
Our objective is to invest in great companies led by great founders. Beyond that, we are flexible on the amount of capital so that we can best cater to the company’s needs. Our range in a single investment is $5 million to $40 million. We have a number of partners we work closely with if capital requirements exceed $40 million.
Use of Proceeds: Growth or Acquisition Capital, Shareholder Liquidity
The primary use of proceeds for our companies is growth or acquisition capital. By partnering with Volition Capital, our companies can attain market leadership more quickly and create a more valuable company over the long-run. We also invest to create liquidity for other shareholders, including founders, in companies that have a proven track record of profitable growth.
Involvement: Board Position
We want management teams to run their companies. But, we also believe that we bring useful perspectives and contacts given our long history of seeing many companies succeed. As a general rule, we lead or co-lead every investment and sit on the Board of Directors of the companies we invest in. Our role on the Board is as a helpful, collaborative partner.
Ownership: Meaningful Minority Position
We look for meaningful ownership in the companies we invest in, but we still prefer to be minority investors. This is most consistent with our desire to see founders and management own the company, while also being a significant partner around the table.
Intangible: Shared Alignment and Vision
We think it’s critical to have a common vision with the founder and the management team. It is invaluable to be fully aligned on the goal and the path to get there.