Bringing Web Based Businesses to Well Diversified Investors
The equation above illustrates the art and science that sets Webfolio apart from the rest, and it all starts with a strong asset. We are deliberate in the acquisitions we choose and therefore, only about 5% of the deals we see make it to the next level. From there, we go deeper and put each asset through a comprehensive risk assessment to understand both the potential upside, downside, and if the asset aligns with our expertise and infrastructure. Lastly, and arguably the most differentiating factor, is that we’re all operators. Not only have we done this before, but we know how to do it again. If this sounds like a good fit, we’d be happy to hear from you.
Without a doubt, time is our most valuable resource. To prevent “tire kicking,” we have found that having a clear strategy and a deliberate approach to investing allows us to be as efficient as possible:
1. EBITA between $500k and $2m
We have a very specific niche. While our experience includes both small and large companies, we appreciate the opportunity to work closely with our portfolio companies. That can only happen when they are smaller.
2. Ability to fully acquire or take controlling interest
Not Angel and not VC; we are a buyout fund. That said, if you’re talented, we can appreciate the value you can provide and therefore would only be looking for controlling interest.
3. Technology based with majority of revenue coming from subscriptions or maintenance fees
Our philosophy aligns best with what Warren Buffet says: Invest in what you know. Our team is made up of operators with extensive experience in software as a service (SAAS) technology companies. There’s nothing wrong with other business models, but it’s simply not our focus.