Investment Focus

Overview

Spring Lake Equity Partners invests in later-stage, technology-oriented growth companies.

We focus on companies with proven products and services that require equity capital for growth initiatives or liquidity.

We seek to partner with management as a trusted advisor to help companies transition from entrepreneur-driven businesses to organizations with scalable and repeatable business processes and financial discipline.

Spring Lake seeks to be a lead investor, ideally the first institutional investor, but can work collaboratively with other investors as well.

We target investments across a range of industries, primarily but not exclusively in technology sub-sectors such as software, digital media, mobile, data center infrastructure, healthcare IT, and business/financial services.

We prefer investment opportunities where we can add value through active Board participation, our network of contacts, helping to optimize business processes, and sourcing and analyzing acquisitions.

Our capital will typically be used for growth initiatives, acquisitions, or providing partial liquidity to management and existing investors.

Investment Criteria
While every opportunity is different, investments will typically include many of the following features
Size of Investment: $7 to $15 million
Investment Stage: Later-stage, $8 to $100 million revenue
Type of Target Company: Technology-oriented private companies
Type of Transaction: Growth equity, recapitalizations, acquisitions
Ownership: At least 10%, typically in a minority position

Primary Focus on Later-Stage, Technology-Oriented Growth Companies

Spring Lake Equity Partners invests principally in companies that have moved beyond initial market acceptance of their products and services, have proven value propositions and attractive business models. These later-stage companies typically meet the following criteria:

  • Successfully introduced a product or service to the market
  • Demonstrated revenue growth with identified future growth catalysts
  • Reached at least $8 million of revenue run rate
  • High customer loyalty and repeat customer rates
  • Achieved profitability or have a clear path to profitability
  • Capital efficient business model and inherent scalability
  • Core management team in place
  • Attractive competitive dynamics

 

We will opportunistically pursue smaller transactions in earlier stage companies or much larger transactions with co-investment from strategic partners or others