We focus on B2B companies that sell tech-enabled or managed services in healthcare and information-intensive industries.
The most appropriate users of entrepreneur-friendly capital are companies with high gross margins, that generate $5M – $15M in annual revenue, are profitable, and have grown at >15% for several years. Your growth is consuming most of your income, but with more cash you have a clear path to seize a big opportunity.
Polus offers a desirable option for business owners who want capital, deserve capital, but do not need capital.
You want the capital to help fuel growth, but are loathe to give up a lot of equity at a cheap price, or deal with onerous short-term private debt terms. You deserve the capital because yours is a real business with success and a track record, but somehow is not a fit for what banks, PE, VC, and debt firms are structured to fund.
When we were running businesses like yours, we found traditional capital options undesirable.
Now that we live on the other side, we decided to create a capital option we would have liked to use. We started by developing an innovative return structure for the Limited Partners (LP) who provide us capital because that structure is really the limitation for all investment managers. Polus’ structure is different than traditional VC, PE, and debt funds.
Polus’ LP return structure allows us to be fair and flexible with entrepreneurs.
By “fair,” we mean that if you do well, we do well. If you do not do well, we do not do well. By “flexible” we mean that you are not forced to sell your company, or do it on our timeline. You have space to scale your business because we avoid burdensome covenants. We do not demand a Board seat or preferences that can take control away from you.
Polus Capital is for entrepreneur- or management-owned companies who have been through the gauntlet of banks, debt funds, VCs, PEs, and angels.
These companies do not need the capital to survive, but they want it to grow. So, they hold out for capital on terms they can accept, with a financial partner who truly understands the challenges of growing businesses.
They are holding out for Entrepreneur-friendly Capital.How it Works
We care about operational, strategic, and psychological fit.
Polus Capital works with entrepreneurs, owners, and managers who scrappily built their business out of the “infant mortality stage” of company evolution (i.e. revenue <$5M).
They know the value of a buck, and are not looking for a trophy VC investment to spend on swanky new office furniture.
They are frustrated, irritated, and indignant after trying to raise capital from the existing options and finding them undesirable.
They believe in their business and want to hold onto their equity because they know it will become much more valuable once they achieve their growth.
Since you are taking the time to learn about Polus, here are specific criteria for you to consider. These are not all hard-and-fast must-haves, but it gives you a sense of who we work with:
Revenue: $5M – $15M
Growth: >15% CAGR
Capital: $1M – $5M
Investors: No institutions
Product: Recurring services
Markets: Healthcare, Tech
If all that sounds like a great description of your business, let’s get started. If we get to know each other a bit more and we are not a great fit, we will know quickly and part as friends. If nothing else, we can probably refer you to some other capital folks who may be a better fit for your business.