We invest in UK-headquartered companies, with revenues of £1-20 million, with the following attributes:
But we don’t need everything to be perfect at the time of investment.
We understand from experience that: the products might need more work; management teams may need filling out; scale may be needed to grow profitability; and sales and marketing operations may still be feeling their way. The business itself might even be in a distressed or turnaround situation.
None of this scares us. In fact, it brings the best out of the Root Capital team. For us, it’s the potential that is key.
We invest up to £10m from our own funds into each company in our portfolio and become an involved and active business partner with the long-term aim of very high returns for ourselves and our management teams.
We like to move quickly through the initial deal process, get in a room with management and start the process of planning and building.
Our approach is built on three key stages:
Refining the strategy, making the product best-in-class, and recruiting the right people, into the right roles, to do the right things
Rapid and sustained growth – through world-class sales and marketing supported by strategic bolt-on acquisitions.
Becoming a market leader and achieving a £100 million+ exit
We’re also comfortable with special or ‘creative’ situations that require a more entrepreneurial approach to get the job done. This includes retirement sales, buy-and-builds, turnarounds, turn-ups, distressed cases and more.
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