Investment Strategy

Fulcrum Ventures plans to make opportunistic equity and debt investments in smaller growth companies located primarily in the Southeastern United States. The Principals plan to concentrate on underserved areas and inefficiencies in the market where we can generate substantial returns with relatively modest risk. The Fund plans to make investments of up to $5 million over the life of the Portfolio Investment. The Principals will consider a variety of investment opportunities; however, they plan to focus on companies with many of the following characteristics:

Financial Metrics

• Revenues of $2 -$50 million
• Profitable or nearing profitability with a focus on increasing cash flow
• Annual growth rate greater than 20%

Types of Businesses

• Limited technology and market risk
• Southeast based
• Healthcare, information technology, and technology-enabled operating companies
• Distinctive competitive advantages identified
• Experienced management with committed vested interest in the company and meaningful upside potential for personal return
• Proven business model
• Bootstrap mentality

Investment Parameters

• Expansion capital versus large investments in technology or intellectual property development
• Relatively modest capital requirements over life of investment
• Relatively uncomplicated capital structure
• Attractive pre-money valuations
• Ability to achieve target IRR with exit value below $75 million
• 3-5 year exit horizon

Types of Transactions

• Growth capital
• Management buy-outs
• Acquisition financing
• Recapitalizations

 

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