San Francisco, CA & Austin, TX – Strattam Capital, a private equity firm that invests in independent, founder-led technology companies, has been named to Inc. Magazine’s 2020 Private Equity 50 list honoring founder-friendly private equity firms. The list was created based on extensive input from entrepreneurs who have worked with private equity firms across the industry. The final list recognizes 50 firms that entrepreneurs can trust, collaborate with on new strategies, and look to help in financing acquisitions during these uncertain times. All 50 have a successful track record of backing entrepreneurs. Introduced in 2019, it has become a go-to guide for entrepreneurs who want to grow their companies while retaining an ownership stake.
“We’re honored to be named one of the top 50 Founder Friendly Private Equity Firms of 2020,” said Bob Morse, Founding Manager Partner, Strattam Capital. “We created Strattam Capital to work with individual business owner entrepreneurs, providing the people, process and scale to support their businesses in reaching full potential.”
Founder-led businesses comprise 100% of Strattam’s portfolio, with founders in each case rolling a significant equity stake alongside Strattam in the ongoing entity. Each of those platform investments shared a number of founder-friendly terms, including all-common equity structures and limited debt. In addition, those portfolio companies have acquired an additional nineteen founder-led businesses over the past five years.
“I get the chance to interact with many entrepreneurs who have relentless drive and want to build a business that fixes problems, improves a process, or makes the world a better place. But to do that, it often takes the backing from a private equity firm that will provide more than just financial backing. It takes wholeheartedly supporting that vision and treating the founders like partners,” says, Scott Omelianuk, editor-in-chief of Inc. media.
One of the most distinctive elements of the Strattam approach is the Five-Point Plan, an experiment in radical transparency during the transaction process. Before signing any deal, Strattam and the business owner agree in writing the five most critical actions which will create future value. This approach has been welcomed by founders for reducing uncertainty, creating alignment, and clearly establishing a strategic direction. Founders know they will have the resources and support to execute against the plans starting day one. It also solves the dreaded “First Board Meeting Surprise” problem where the private equity team and the founder discover post-transaction that they don’t share the same set of goals.
Strattam provides functional expertise to support founders with two important groups: operating executives and the Strattam Founders Group. Strattam’s purpose-built operations team is comprised of executives who have lead technology companies in operational roles spanning sales, marketing, technology and product. Strattam’s Founder Group provides valuable industry expertise and includes more than 50 individual technology entrepreneurs and thought leaders as personal investors in the Strattam Funds.
Strattam recognizes that technology company founders have a choice in who they select as a capital partner. To hear from founders about their decision process and choices, please visit https://wi.st/2FZiIH0.
Strattam has more than $450 million in assets under management.
Strattam Capital invests in founder-led independent B2B software and technology companies outside of Silicon Valley. We believe in aligning with founders and CEOs before signing, via our Five-Point Plan process to allow execution with purpose, excitement, and efficiency. Headquartered in Austin, TX, we connect companies with the people, process and scale needed to reach their potential.
SOURCE: Strattam Capital
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