The Stage Fund is actively seeking strategic opportunities that compliment it’s existing investments including bolt on acquisitions. Currently the portfolio consists of software and hardware companies in several different industries. That said, our interests are opportunity focused and not necessarily industry specific. The Stage Fund investments have historically been companies that have raised significant capital, developed products and/or services, are post revenue, and require a new and different lead investor.
The typical investment has several challenges, issues or road blocks facing the company, and holding it back from a strong, successful pivot and recovery.
- Capitalization table making a venture investor's return impossible
- Companies faced with a competitive "leap-frog" technology advancement caught off guard
- Firms busting debt covenants with no recovery plan or support from equity holders
- Debtors in Possession requiring exits
- Support for "Strong Management" buy-outs
- Senior Debt Holders/Venture Lenders requiring crisis management and support options
- Market developed business experiencing industry change
- Post revenue, Pre-Breakeven requiring focus to reach sustained growth
- Declining revenue segments with a strong core product
- Capacity for growth through organic means or by acquisition & roll-up strategies
- Companies that will benefit from rapid cost reductions supported by centralized administration
- Broken venture equity syndicates causing stalemates destroying value by lack of decisions
- Companies with dysfunctional leadership inside and outside the company
- Sound technology requiring a pivot towards a profitable industry or new business segment
- Companies losing talent and no ability to hire experienced professional leadership
The Stage Fund specializes in acquiring businesses that are undergoing change in capital structure, strategy, operations or growth and can benefit from our operational and capital approach. We target companies with a core business, products or services, revenue, strong customer relationships, and that have reached a point in their lifecycle presenting an opportunity for transformation.
These companies have typically raised between 10 and 50 million dollars of equity and debt capital. The investment has usually not grown at the expected annual growth rates venture capitalist's require. Most require annual growth rates for top line revenue in excess of 100 percent year over year. If a particular investment within a typical venture capital firm is not achieving 100 percent, the likelihood of follow-on investments by that incumbent venture capital firm, drops radically. The Stage Fund's business model does not require 100 percent revenue growth year over year and rather deploys the private equity model.
Our history shows that we acquire companies taking control at all levels, Board of Directors, capitalization, and most importantly, operational and management control. Tough decisions are not made efficiently through committee meetings over months. We have worked efficiently with equity investors and venture lending firms in very technical situations bridging the gap between management and the Company's equity and debt owners. We help preserve the relationships between these investors when elements of individual funds change and capital becomes limited or unavailable. Venture investing changes, economies move, and The Stage Fund is uniquely positioned to manage through these situations. We constantly challenge ourselves to move faster, smarter and increase returns for all involved.
The Stage Fund acts quickly. The past has proven that we have completed diligence and signed purchase agreements reaching contractual and closing terms in 72 hours or less. Our EIR's and group executives can be deployed and actively running a newly acquired investment within 24 hours. Our bench of talent is deep and strategically dispersed which allows us an advantage when time sensitive situations arise.
Due to the reputation and proof of talent within the firm, we are often called upon in crisis situations. In these special situations, it can be compared to the fundamentals of survival and vitals of the investment are checked; Financial, operational and managerial reviews take place. To provide stability during times of chaos is the core operating model of The Stage Fund.
