Investors in High-Growth Businesses
Five Elms is a venture capital and private equity firm that invests $1 – 10 million in high-growth businesses. We typically invest in the following situations:
Growth Equity: expansion capital to accelerate growth, typically used to fund sales and marketing initiatives. We provide capital to entrepreneurs who have proven their business model and are at a crossroads:
- “go it alone” and maintain a lifestyle business, or
- bring in a partner to accelerate growth and become an industry leader.
Shareholder Liquidity: cash for angel investors, founders, and other shareholders looking to sell existing equity. We provide liquidity for shareholders while management adds an investor active in growing the business.
Management Transitions: liquidity or exit opportunities for owners looking to sell a majority of their company. Five Elms can provide the capital, leadership, and operational skills to continue a company’s growth, while maintaining the legacy of its founders.
Five Ways We Are Different
- Our Sweet Spot is Investing $1 – 10 million: we are one of the few venture capital or private equity investors who will invest $1 – 10 million for a minority interest and spend meaningful time helping entrepreneurs grow their business. Our partner companies have often been approached by larger firms, but don’t immediately need a $10-20 million check or the equity dilution that goes along with it.
- Targeting the Middle US: while we will invest anywhere in the United States, we have a preference for investing in the middle of the country given our Kansas City location and the low cost, high standard of living available to entrepreneurs.
- Highly Flexible Capital: our capital is typically used to fund working capital, sales and marketing, and expansion of the team, but we are also comfortable providing liquidity for shareholders.
- Control Not Required: while we do buy entire companies, we prefer to invest in companies where management continues to control, operate, and maintain a significant financial stake in the business.
- Transparent Style: we have a very open working style. Our partners know where we stand and how we make decisions.
