Investment Criteria and Target Sectors

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 <$250 million enterprise value

  • Transaction Types

    Transaction Types

    • Expansion capital
    • Growth recap
    • Roll-ups

  • Key Attributes

    Key Attributes

    • Significant market opportunity
    • Proven business model and customer demand
    • Strong franchise or defensible market position

  • Investment Structure

    Investment Structure

    • Convertible or participating 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 Sectors

Catalyst was founded in 1999 with a focus on investing across technology, media, and telecom (TMT) and we have since expanded our areas of interest to include other growth areas within technology-enabled business sectors.

Today, we target 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. We strive to be a thought leader in our industries and develop an informed point of view on new sectors through our research, as outlined below:

Internet

  • Software-as-a-Service (SaaS)
  • Hosting / Managed Services
  • eCommerce

Wired / Wireless

  • Service Providers
  • Infrastructure
  • Spectrum
  • Machine-to-Machine (M2M)

Business / Consumer Services

  • Digital Media and Ad Tech
  • Healthcare IT & Services
  • Marketing Services
  • Ed Tech
  • Food Tech
  • Clean Tech