Plymouth Ventures’ objective is to realize superior returns through the long term appreciation of investments. Funds managed by Plymouth Ventures invest in growth-stage companies, a niche which is under served in the Great Lakes region, particularly in Michigan and Ohio. We generally invest in revenue producing companies with the potential for significant growth through a defined, catalytic event or milestone whose achievement will be financed, at least in part, by Plymouth Ventures managed funds. It is critical that the companies have validated the functionality of their product or service.
Plymouth Ventures’ managed funds investments are guided by the following criteria:
- A strong management team
- An established revenue stream;
- Positive cash flow in the near future; and,
- A clear catalyst for growth that requires funding.
Plymouth Ventures takes a hand-on approach to managing its relationship with the companies in which its funds invest, starting at due diligence, through closing, to monitoring the investment. This includes having investor involvement in the company via board seat or board observer roles, and bringing in necessary expertise from the investor pool as issues or opportunities arise.
Plymouth Ventures-managed funds typically commit investments of $1.0 million to $5.0 million in each portfolio company. The investment structure will be tailored to each investee. Investments will typically take the form of preferred equity or subordinated debt, or a combination of the two. Initial entry by the funds may be in debt form to provide maximum downside protection and liquidity while preserving optimal entrepreneurial incentives. Plymouth Ventures-managed funds provide follow-on financing as appropriate. In many situations, companion bank financing is arranged or facilitated. Plymouth Ventures also syndicates investments with regional investors and limited partners when a larger financing is needed. Plymouth Ventures’ managers have been strong proponents of co-investing with other like-minded firms to raise larger rounds of capital, balance risk, and ensure that various perspectives are considered during due diligence and post investment. It is Plymouth Ventures’ expectation that the funds’ financing will allow investee management to develop sufficient value to support a liquidity event within two to five years of initial investment.
See our Deal Flow