The Right Approach to Growth Capital.
Capital is a commodity.
Culture fit and shared goals are crucial.
We invest $4-40 million in companies with $2-20 million in revenues. Minority or majority investments, growth capital or liquidity for founders and early investors.
We specialize in partnering with founder-owned, bootstrapped businesses, working alongside management to accelerate growth and continue to build industry leading businesses. We take partnerships seriously and will work our tails off to help you succeed, but never take ourselves too seriously. Our relaxed, open, and honest working style is one of the reasons we've been successful in earning our partners' trust and a seat at the table in profitable businesses where additional capital is optional.
We don't believe in "unicorn or bust". We don't push companies to grow at all costs or raise mega rounds of capital - that mindset increases founder dilution and reduces the landscape of exit scenarios where everyone wins. We like managers to have both significant equity stakes and significant option value as to what outcomes can be a win.
We exclusively invest in B2B software and internet-enabled companies. This specialization has helped us build an unmatched network and domain expertise. Founders can supplement their industry knowledge with our experience in helping accelerate growth, overcoming positive and consistent challenges tied to scale, and de-risking the path to a successful exit for all stakeholders.
Our Firm and Operations Support Team have been purpose-built to optimize key functions in a bootstrapped organization (e.g., sales, marketing, finance, recruiting). Our goal is to provide you the resources and expertise to supplement your already successful organization and to assist in more rapidly achieving organizational goals.
Our best performing companies are obsessed with company culture - it is crucial to their success. We look to build on existing culture and don't meddle in day-to-day operations.
Much like the companies we back, we aren't the incumbent private equity behemoth - we try harder.
Salt Lake City, UT
SaaS provider of online tax and accounting services that merges cloud-based technology with expert accountants
Little Rock, AR
SaaS provider of communication and content publishing solutions for K-12 school districts
Dallas, TX and Miami, FL
A leading provider of pet death services and memorial products to veterinarians and pet owners.
Acquired by Groupon
Baltimore, MD
OrderUp is an online & mobile food ordering and delivery service. OrderUp was successfully bootstrapped to serve 30 markets in its first 10 years, Five Elms invested in the company's first institutional raise, providing capital to help accelerate new market launches and to build out the company's executive team. OrderUp was acquired just 10 months into our investment by Groupon to power its national online food ordering and delivery service.
Acquired by Mercator
Lenexa, KS
Catapult is a SaaS platform for shipping pricing and rate management. Five Elms took a minority stake in the company in 2010 and actively worked with the company as it scaled and assisted with the institutionalization of the company's infrastructure. In July of 2015, the company was purchased by Warburg Pincus-backed Mercator for cash and stock, which we still hold.
Acquired by Asurion
NEW Customer Service was the leading provider of consumer product protection programs in the US. TH Lee Putnam Ventures bought NEW in 2004 for $370 million. In 2006, NEW was sold to Berkshire Partners LLC and Freeman Spogli & Co. for $1.21 billion. In 2008, NEW merged with Asurion to create the world's single largest provider of product protection services.
To learn more about Asurion, visit www.asurion.com
IPO (NYSE:FXCM)
A leading online foreign exchange trading firm catering to retail and small institutional markets. Five Elms purchased a secondary equity stake in FXCM in late 2007 in partnership with Long Ridge Equity Partners as part of Refco's bankruptcy process. The company went public on the NYSE in December 2010. We sold the last of our FXCM stake in 2013.
Acquired by HARMAN International
Symphony Services was a leading provider of technology-based product engineering outsourcing services. TH Lee Putnam Ventures invested $20 million in Symphony Services in 2003. In 2012, Symphony merged with Teleca, creating the world's leading services organization developing software and solutions for mobile appliance OEMs and telecommunications operators. In 2015, Symphony Teleca sold to HARMAN International (NYSE: HAR) for $780 million.
To learn more about HARMAN International, visit www.harman.com
Acquired by ePLDT
SPi Global provides content outsourcing services in the legal, publishing, and healthcare verticals in addition to its industry-agnostic call center capabilities. TH Lee Putnam Ventures bought SPi along with GIC Special Investments in 2004 for $90 million. The purchase was the first private equity-backed take private in Philippine Stock Exchange History. TH Lee Putnam and GIC sold SPi Global to ePLDT, a wholly-owned subsidiary of the Philippine Long Distance Telephone Company in 2006 for $159 million.
We help solve the growing pains common to companies in high-growth mode: developing and prioritizing growth strategies, recruiting complimentary members to the team, growing a process-driven sales organization, institutionalizing financial infrastructure, business development / partnerships, and accessing the capital markets.
4801 Main Street, Suite 700
Kansas City, MO 64112
913.953.8960
ws@fiveelms.com