Emerging Growth Investments
McCarthy Capital’s Emerging Growth strategy makes growth equity investments of $5 million to $10 million in businesses with at least $1 million of recurring revenue.
McCarthy Capital’s Emerging Growth strategy makes growth equity investments of $5 million to $10 million in businesses with at least $1 million of recurring revenue.
Company Characteristics
At least $1 million of ARR or $3 million of total revenue
Revenue growth of at least 15% annually; gross margins of at least 40%
Scalable businesses with a preference for recurring revenue, either via contract or purchasing frequency
Software, technology enabled business services and consumable consumer products companies
Established management teams with a track record for growth
Proven business models, an established customer base and traction in the market
Products and/or services that are branded or differentiated
Markets with sufficient size and favorable growth prospects
Clear path to profitability
Investment Characteristics
Investments of $5 million – $10 million
>50% primary growth capital
Founders/managers maintaining significant ownership
Ability to form a strong partnership with management
Preference for minority ownership position
Not necessary to be first or only institutional capital or to be lead investor