Discovri Labs seeks to make investments in early-stage and small businesses (typically, between $100,000 and $5 million in revenue) that possess certain characteristics.
These companies fall outside of the typical venture model and below the radar for traditional lower middle market private equity interest.
We affectionately refer to this approach as Micro-Cap Investing.
Micro-cap market opportunity at a glance…
According to the U.S. Census Bureau and Pitchbook
U.S. businesses fall into this size range
Portion of all U.S. businesses
Receive investment from a venture capital or private equity firm
Investing in the micro-cap space presents enormous value creation opportunities through strategy refinement, operational improvement, and complimentary add-on acquisitions.
Frequently asked questions
What is your industry sector focus?We are industry sector agnostic, rather we look for certain characteristics in a business. We tend to steer away from asset intensive and highly regulated businesses. We favor things that include eCommerce or digital scalability.
Do you invest in start-ups?Yes, we love start-ups with great ideas and a lot of potential. We look for start-up opportunities that have a vetted and thoughtful business concept and preferably, a minimum viable product or service. If you know of a situation that we should consider, please reach out.
Are there any geographic restrictions on where companies are located?We invest in businesses located in the United States. We are open to learning more about a business regardless of where it is domiciled, but keep in mind that businesses outside of the United States need to be very compelling for us to consider moving forward.
What is Discovri’s general valuation approach?Very much dependent on the situation, company size, metrics, and market. We do focus on profitability and cash flow, so a multiple of EBITDA or cash flow is our typical starting point.
Will you invest in businesses larger than Micro-Cap?While we are primarily focused on investing in businesses that are between $100,000 and $5 million in revenue, we will consider investments in larger businesses that meet our criteria.