We focus on unique equity opportunities Madison Bay provides customized equity solutions to growth businesses that require a new investor to not only provide capital, but also to balance a range of factors that traditional investment firms have been unable to optimize.
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Passage of TimeThe need for investor and employee liquidity is often exacerbated by the passage of time. Working hard for 4-7 years can be a great journey, but often shareholders require liquidity along the path from start-up to industry leader status. In select cases, Madison Bay works with existing shareholders to address their liquidity needs. Our secondary equity practice is focused on improving shareholder alignment and enabling the Management Team to focus on creating a more valuable enterprise.
Existing Shareholder PerspectivesMadison Bay is a collaborative, late-stage investor. We work closely with existing shareholders to understand perspectives around the past, the current and the future goals for the business. Our experience complements the heavy lifting done by earlier stage investors and teams, and our goal is to partner and truly accelerate the business after our investment.
New Investor DynamicsMadison Bay is a value-added, minority investor. We enjoy working alongside other investors versus pushing them out of the room. During due diligence, we spend the time to understand the dynamics of the current investor group in hopes of determining how to best support the collective effort.
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Round Size and ValuationNot all businesses require $50-$100 million to meet their growth capital needs - sometimes, smaller is actually better. Madison Bay is focused on businesses were $10-$25 million of new equity is the sweet spot – unlocking growth and driving higher enterprise value. We also find it’s also much easier to talk about valuation when dilution is balanced, both sides are rational, and the math makes sense.
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Capital Needs of BusinessGrowth equity is a great way to accelerate a business. We love to work with teams who have done the work to understand the capital they actually need to meet corporate objectives. Over-capitalization may be in-vogue at times, but we believe there’s a better case for matching actual capital needs with the right-sized growth equity financing. We’d be happy to help you walk through the math as well.
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We Partner with Management Teams to craft equity financings to accelerate growth
We approach every situation as a unique, customizable situation. Our equity investment size ranges from $5 million to $25 million.
We Target leading businesses across technology, consumer product, and financial vendor markets
Madison Bay looks for businesses at an inflection point where our capital and expertise can have a meaningful impact.