REBLOG: US PE middle Market Report (Looking for co-investors in EBITDA deals)

RHC family of funds has strong propietary deal flow, but we always welcome referralf for $3 million plus EBITDA companies, accredited investors with $100,000 USD to co-invest, family offices with proof funds for $5 million to co-invest, and other sources of capital with track record and proof of funds.

Contact Sarah, Special Partner to a RHC fund, about setting up meeting with manager member of RHC’s funds or Special Purpose Entity (SPV/SPE) for co-investing.

Join our private investor network group to have access to our resources such as Pitchbook ($25,000 USD year value) and our sources of capital.

URL: https://investornetworkbyjd.com/

REPOST/REBLOG

US PE middle Market Report

The US middle market ended a tempestuous year by
recording $480.9 billion in deal value—by a slim margin
the highest annual number on record. After the near
halt of deal activity in the wake of COVID-19 in Q2 2020,
convergent trends drove the middle-market recovery
in Q3 and a dealmaking frenzy in Q4. In 2020, deals
priced under $500 million accounted for the greatest
share of middle-market deals since the global financial
crisis (GFC), as some PE firms acted opportunistically
to acquire assets at a discount, while others snapped
up small companies with growth potential buoyed by
the pandemic. At the upper end of the market, a flight
to quality drove elevated valuations in the technology,
healthcare, and financial services sectors.

In 2020, US middle-market exits fell for the second
year in a row as many GPs delayed Q2 exits amid
market turmoil. However, by the end of the year, GPs
were making up for lost time in earnest, driving Q4 exit
activity above pre-pandemic levels—a trend that will
likely continue into 2021. Although sponsor-to-sponsor
exits declined YoY, they remained the most common exit
type for middle-market portfolio companies. Looking
ahead, special purpose acquisition company (SPAC)
mergers may facilitate more public exits for middlemarket companies

Although the amount of capital raised dipped by
approximately one third YoY, 2020’s US middle-market
fundraising proved resilient all things considered. GPs
raised 127 middle-market funds for a combined $101.1
billion—a far cry from 2019’s record-breaking heights
but roughly on par with fundraising levels in 2016-2018.
As a result of 2020’s disruptions, LPs flocked to middlemarket funds raised by the largest PE firms, especially
funds focused on technology and healthcare.

To access our research data contact Sarah or Charlotte via LinkedIn:

Charlotte, Intern and member of single family office

URL: https://www.linkedin.com/in/sellyourcompany/

Sarah, Special Partner to JD Morris & Ventures

URL: https://www.linkedin.com/in/sarah-m-297343209/

(use email to connect on LinkedIn: sym.networking@gmail.com)

IMPORANT: Please confirm what type of capital you can provide such as accredited investor, fund with $5 million USD dry powder, family office with proof funds of $5 million USD, private equity with proof of $5 million USD, or other sources of capital with proof of funds.

REBLOG Forbes Finance by JD Morris

REBLOG: Seeking Capital For Your Startup? Remember: It’s About Returns For Your Investor by JD Morris from Forbes

One of the most daunting tasks you are likely to face after having successfully founded a growing startup can be securing enough capital to pay the bills until the expanded operations begin to pay for themselves. Startups seeking funding for their expansions have a number of options for securing capital, but you still need to convince investors that your business is worthwhile as an investment. An understanding of the funding landscape will help hone your sales pitch and increase the odds of a successful capital campaign.

Unfortunately, the American business ideal of steady growth over the long term has been replaced in the minds of many entrepreneurs by dreams of founding a unicorn company that explodes onto the scene and cashing out through an initial public offering. Startup founders need to keep in mind that the likelihood of founding a unicorn is incredibly small, but there are other successful strategies for rapid growth using outside capital. Those strategies should be centered on producing a high company valuation and creating significant wealth for yourself and your investors.

Few modern startups succeed without outside capital.

The Fortune 500 list features a few companies that made it to the top as startups and by expanding the family business. Bill Gates was lucky enough to have a product IBM desperately needed. Jeff Bezos got his seed capital from his parents’ savings and raised $8 million through a series A round from Kleiner Perkins in 1996. Both companies also benefited from fantastic support from advisors and investors. For example, Amazon’s investment bankers played a crucial role in raising debt for them during the dot-com collapse, which resulted in Bezos retaining a large share of the company. When looking at the success of the founders of Facebook, Google, Microsoft and Amazon, you should know that this type of success is even rarer than the unicorn model.

Of course, there is still the chance your company will succeed without the help of outside capital. The bootstrap model, where an entrepreneur can entirely self-fund operations until the company is financially viable, can still work. With luck and products that offer high profit margins, the founder can take home a considerable paycheck. However, bootstrapping is unlikely to land you on the Forbes 500 list of billionaires any time soon. About half of businesses fail within five years, and capital is always needed for rapid growth.

If you are lucky enough to get capital from SoftBank, Sequoia Capital or other mega-funds to stay solvent until an IPO, then you are one of the very rare unicorns. The great IPOs of today tell a unicorn success story. However, there are significant failures. Jawbone’s pivot to health-tracking devices did not keep it from its 2017 liquidation. Dream of a unicorn, but remember, most investors are not looking to deploy capital to develop a unicorn.

PROMOTED

Investors know the odds are against you.

Startup investors generally use a high-risk model where they spread their capital among numerous startups, knowing that it only takes one or two to be successful enough to pay back the initial capital investment. Companies that produce such returns are called dragons. Unicorns are more based on valuation. A dragon is one deal that pays the return for a fund after investing in many deals.

Normally two to three startups will provide enough of a return to make a venture capital fund successful, while the others fail to make any return for the fund. Based on this math, startup investors are generally looking for an exit when a company has achieved a valuation that is roughly seven times greater than their total investment in a company, in my experience. Sure, an investor could buy into an existing unicorn, but a high return after the B round is unlikely and often will not cover the losses from their other investments. Most investors need high valuation that will be supported by acquisition valuation versus the longer and riskier path of an IPO.

Laying out a realistic exit strategy is key.

Venture capitalists and startup investors know that most of their bets will be on losers, so if you think your idea is going to be a surefire unicorn that will dominate its market, go ahead and pitch it that way. Investors love to see enthusiasm in a startup, because it lets them know you believe in your company and are willing to put in the work necessary to make it successful. However, you should also lay out a more realistic exit strategy for investors, such as selling the company. I earlier suggested that “entrepreneurs should stop dreaming of the shiny IPO” and focus on being attractive for an acquisition.

Remember, investors are looking for a dragon to show their limited partners (i.e., 700%-plus return). A unicorn can be helpful for venture capital funds to show their investors should they want to raise more money for future funds, but the bottom line is the return they get from investing in you.

ABOUT JD MORRIS

Mr. Morris (JDM) focuses on serving on the board of advisors and board of directors of several private companies.  His family of Special-Purpose Vehicle (SPV) invests in a wide range of businesses. JDM has helped close more than $91 billion in deals—leading more than $7 billion in enterprise value of these deals.

He has been a speaker at various industry forums, has been quoted in numerous leading publications, and has made several appearances on Bloomberg, CNET, CNBC, ESPN, and many media outlets. Mr. Morris hosted an educational radio show about financing deals and other hot topics after Bloomberg morning news.

Mr. Morris received a B.A. in economics with mathematics from Hampden-Sydney College in Virginia, where he worked in the development office to pay his way through college. He is an Omega Rho Honor Society student in Washington, D.C., with The George Washington University (GWU). JDM is currently working on finishing a program under MIT Sloan Business School, as well as the MIT Computer Science & Artificial Intelligence Laboratory (CSAIL).

REPOST: Why PE firms targeting tech buyouts could face competition from SPACs

Why PE firms targeting tech buyouts could face competition from SPACs By Leah Hodgson March 10, 2021

Private equity has become a well-established path to liquidity for VC-backed startups, but a rebound in IPO activity and the rise of SPACs could mean more competition for deals.

PE buyouts have gone from representing 9.7% of global VC exits in 2010 to 16.4% in 2020, according to PitchBook data, making them the fastest-growing exit type compared with strategic acquisitions and IPOs. These deals—many of which are tech-focused—have continued into this year. Notable examples include Platinum Equity-backed Cision‘s $450 million purchase of Brandwatch from investors including Highland Europe and Nauta Capital, and Vista Equity Partners‘ reported $1.1 billion deal for Gainsight, backed by Battery Ventures and Lightspeed.

Read More: https://pitchbook.com/news/articles/pe-firms-tech-buyouts-competition-from-spacs

REBLOG: Global Fund Performace Report as of q2020

JD Morris and RHC Family of funds seeks to partner with accredited investors, HNWI, and Family office to share research and deal flow. We co-invest with our partners through Special Purpose Vehicles (SPVs) or other entities (SPEs). Contact us about research and report from our paid resources such as PitchBook.

Global Fund Performace REport as of q2020

The third quarter of 2020 saw differing results across
strategies, but there was less of a feeling of paralysis and
uncertainty as the markets grew accustomed to the new
normal under lockdown. VC led the preliminary quarterly
results with an overall return of 10.5%, though PE was not far
behind at 9.8%. Overall, private capital results pointed to a
6.8% return, pulled down by real estate (0.2%), secondaries
(0.2%), real assets (2.4%), and private debt (3.6%). While
all the preliminary quarterly results were positive, even if
nominally, one-year horizon IRRs saw greater differences,
including some negative returns. Through June, VC led
with 13.8%, well ahead of the 8.0% second place from
PE. Negative results came from real assets (down 6.7%),
secondaries (down 3.3%), and private debt (down 0.3%).

Contact us to share research, data, and deal flow for co-investing. JD Morris and RHC Family of funds seeks to partner with accredited investors, HNWI, and Family office to share research and deal flow. We co-invest with our partners through Special Purpose Vehicles (SPVs) or other entities (SPEs). Contact us about research and report from our paid resources such as PitchBook.

Business/Productivity Software VC Deal – The Capitalization Report v210225

There has been $3.5 billion capital invested in Business/Productivity software durnig January 2021. 283 deals with pre-money valuaiton for $8.87 million.

KEYWORDS: Plume, Tealium, Earnix, Highspot, Drivenets, Aviatrix, Shippo, lengoo, Gridwiz, venture capital

EDITOR NOTE: The goal of this blog post is to network with capital resources as we co-invest in deals with other funds and sources of capital. If you are a US individual, we ONLY work with accretied investors. If you are a fund or international individual, we will need proof of funds of $5 million in inverstment. This is a report based on our subscription to Pitchbook and other resources.

NAME/TOTAL RAISED

Highspot412.20
Plume (Business/Productivity Software)422.83
Tealium263.89
Earnix98.50
Drivenets325.00
ALL 200+ DEALS CLIKC READ MORE OR CONTACT US TO SHARE RESEARCH/CO-INVEST WITH RHC FAMILY OF SPVs.
Continue reading “Business/Productivity Software VC Deal – The Capitalization Report v210225”

REBLOG: Money Tree Report on VC investing

BOTTOMLINE: Referrals for $3 million plus (we got $25 million EBITDA deal) and new sources of co-investing capital are welcome.

Highlights From The MoneyTree Report

2020 INVESTMENTS HIT NEW ANNUAL RECORD DESPITE THE PANDEMIC

US-based, VC-backed companies raise nearly $130B in 2020, up 14% year-over-year (YoY) from 2019, despite the impacts of Covid-19 around the world. However, annual deal activity is down YoY, falling to 6,022 deals, a 9% decline from 6,599 in 2019.

NUMBER OF MEGA-ROUNDS HITS NEW RECORD IN 2020

The number of quarterly mega-rounds hits a new high for the third consecutive quarter as 99 US-based companies raise rounds of $100M+ in Q4’20, bringing the total number of mega-rounds for 2020 to 318.

NEARLY HALF OF TOTAL FUNDING COME FROM MEGA-ROUNDS IN 2020

Mega-round deal share is roughly half of total funding in 2020 at 49%, up from 44% in 2019.

Application Software VC Deals – The Capitalization Report v210219

Jnauary saw 46 deals for total capital investment of $677+ million for application software VC deals.

The goal of this posting is to share deal flow, co-invest, and share resources with accredited investors and other capital sources for the highest good of creating wealth and more!

KEYWORDS: application software, Didi Chuxing Technology, Baibu, Wayz, QinBaoBao, Minna Technologies, Flink Food, ShotTracker, Chlngers

NAME / RAISED TO DATE

Didi Chuxing Technology23,741.42
Baibu568.10
Fast (Application Software)124.50
Wayz132.50
QinBaoBao44.03
Minna Technologies27.24
Flink Food12.19
ShotTracker31.79
GLZHealth10.00
Meep (Application Software)7.83
Chlngers5.42
Continue reading “Application Software VC Deals – The Capitalization Report v210219”