RHC’s SPE joins investors including Y Combinator, Insight Partners, Romulus Capital, Trifecta Capital and Sound Ventures in supporting EquipmentShare to drive the digital transformation of the construction industry.
RHC’s SPEs continue to co-invest with leading sources of capital such as Tiger Global, TPG Growth, and other capital sources in late-stage rounds into leading deals such as EquipmentShare, Varo Bank, Overtime Sports, Bright Insight, and other TBA investments.
RHC’s MIT Alumni group continues to source great deals allowing the RHC family of funds to co-invest in deals not available to an average accredited investor, family office, or even venture capital firms.
Sunday, March 21, 2021 – RHC’s SPE is pleased to announce their plans to co-invest through an SPV into EquipmentShare’s D round. RHC has continued to create Special Purpose Entities (SPE) to allow its limited partners and Investor Network by JD’s members to co-invest in late stager deals. This round will be led by our MIT alumni group with more than 4 investments through our SPEs into later stage rounds led by major tier one venture capital firms.
JD Morris, spokesperson for Red Hook Capital’s family of SPEs and SPVs said:
The 2021 first quarter has been an amazing start, co-investing with top sources capital such as Tiger Global, TPG Growth and other sources of amazing capital. Our investment in EquipmentShare, Varo Money, Overtime Sports, BrightInsight, FortifID, and other amazing deals continue to allow our investors access to deals closed to other investors or even top venture capital firms.
Red Hook Capital’s SPE joins investors including Y Combinator, Insight Partners, Romulus Capital, Trifecta Capital, Sound Ventures and other sources of capital in supporting EquipmentShare to drive the digital transformation of the construction industry.
EquipmentShare is dedicated to helping contractors with technology-enabled services that impact contractors’ bottom line. EquipmentShare enables the measurement of the construction environment with its Track technology. This data is used to provide insight and control over a historically chaotic environment that is in desperate need of this holistic solution.
If you have proof fund, JD Morris would enjoy meeting you in Southern Florida for some fun and networking his treat!
Sarah (contact Sarah on Linkedin use email email@example.com to request connection) will be setting up meetings for JD Morris with accredited investors that provide proof being accredited and sources of capital with proof of funds for $5 million plus USD to co-invest in 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.
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
(use email to connect on LinkedIn: firstname.lastname@example.org)
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: 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.
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).
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.