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:
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.
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.
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.
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.
We are looking for companies that can be game changers. Our companies bring disruptive technologies and applications to substantial market opportunities. They solve big, high value problems in innovative ways and partner with Volition Capital to establish their market leadership.