Potentially great companies and entrepreneurs may come from anywhere but we focus on:
- Growth stage and scale up businesses, both small and mid-sized
- UK based disruptive marketplace technology businesses
- Businesses initially needing £250k - £2m but we can commit much more based on a multi-year pre-committed financing plan we develop for our companies
- Investing in tranches based on mutually predetermined operational milestones. We believe that this aligns us better with our entrepreneurs and investors and helps create long term sustainable businesses
To really deliver on that promise we believe all interests need aligning around the goals of the entrepreneur and their team, from the start to the end of our engagement.
We are not a fund. We don’t have any need to return money to Limited Partners in 5 or 7 years. As a result, we don’t have any need to see a promising business sold (unless the management believes it is time).
We believe it is important to not overcapitalise a growing company before it needs funding as it reduces the dilution of entrepreneurs and management teams. This is important to us, as it is our belief that the creation of wealth should be shared among the key people who made it possible and not exclusively to those who finance it.
At the sidebyside partnership we look for those very few leadership teams with the goals of creating a substantial business where opportunity meets ambition.
The centre of our investment approach is that a significant opportunity often arises from the development and deployment of technology to enhance a previous process that was neither efficient nor effective, in order to improve customer experience. We particularly focus on the B2B markets, with some specific expertise in Medtech.
We believe that the progression of rapid growth companies follow very similar patterns. It is our experience that companies reach inflection points, and it is how they recognise and move through these points that predicts the long-term success of the business.
Inflection points tend to occur around predictable revenue benchmarks. The first of these often around £5 million pounds of revenue, then in quick succession follow at 10, 25, 50, 125 and £200 million. Naturally, differences in sector will change these figures. Each of these is a profoundly important change in the company’s nature, and generally requires a significant enhancement to the skills of the management team. This is often accommodated by a change in the company’s sources of capital, to maximise the oncoming opportunity.
We recognise that ultimately the most critical assets of a company is the time and availability of its management team.
We therefore endeavour to assist companies that approach us with a thorough, but quick initial appraisal, to minimise disruption to the management teams during the fundraising period.
We also give special attention to female founders who have excellent businesses, but who have not succeeded in raising institutional capital. Additionally, we look for companies where there may be an adjacent strategic opportunity of substance that we can help them develop.