Target Investment Criteria and Sectors

Target Investment Criteria

Catalyst makes equity investments in companies in which our industry knowledge, network of relationships, operating experience and active board participation will add value. We focus on companies with the following characteristics:

  • Investment Size

    Investment Size

    $10 million – $60 million, larger with co-investment

  • Target Size

    Target Size

    Typically <$150 million enterprise value

  • Transaction Types

    Transaction Types

    • Expansion capital
    • Growth recap
    • Acquisitions

  • Key Attributes

    Key Attributes

    • Significant market opportunity
    • Proven business model and customer demand
    • Persistent Growth and compelling unit economics

  • Investment Structure

    Investment Structure

    • Preferred stock
    • Moderate use of financial leverage if appropriate

  • Ownership

    Ownership

    Control or influential minority position

  • Board Seat(s)

    Board Seat(s)

    Yes

  • Geography

    Geography

    Primarily North America and Europe

  • Target Holding Period

    Target Holding Period

    5+ years

Target Investment Sectors

Since 1999, we have targeted investments within the venture capital ecosystem, continually seeking to expand our knowledge, experience, and network of experts to best serve our portfolio companies and their management teams. Through our proactive research program, we identify various sectors of the tech-enabled economy that we believe are poised to experience above-market growth. We continually research new sectors and refresh analyses of existing coverage areas as industry dynamics change.

Horizontal Solutions

  • Industry agnostic products and services targeting a diverse customer base
  • Often enhance productivity or provide outsourced support
  • Examples: Marketing, Sales, IT, Human Resources & Finance

Vertical Solutions

  • Products and services focused on specific industries
  • Often are tailored solutions deeply entrenched within customers’ workflow
  • Examples: Healthcare, Food, Real Estate, Legal & Education