Blue Highway Capital
blue highway capital

Strategy

We invest $2 to $5 million in small companies which are fast growing or have potential to grow, with a focus on companies that are generally cash flow positive, with an annual revenue run rate of $5 million or more.  We partner with small, growing companies with proven business models to provide the capital required to accelerate growth through a targeted use of proceeds. Our goal is to help management teams create value through sustainable, profitable revenue growth.

Our targeted companies don’t need growth capital to maintain the status-quo, but instead understand that investing in the business in the right areas will allow them to achieve a higher trajectory.  Capital is required to scale operations, expand to new markets, accelerate a new product launch, or provide partial liquidity to a founder.  Companies in the “growth equity” stage have matured from idea to product development, have recorded meaningful sales, and have demonstrable proof points of market size and customer success.

Blue Highway does not finance start-up businesses.

We take a flexible investment approach, seeking to create value-added engagements in growth-oriented companies.  As a strategic investment partner, our equity capital can help owners and management accomplish any of the following goals.

Use of Proceeds

  • Provide capital to support a well-defined growth plan
  • Provide funding to support an acquisition
  • Achieve liquidity through the sale of your business
  • Recapitalize your business and provide partial liquidity for founders

Company Characteristics

  • Located in an underserved area or industry sector
  • Annual revenue run rate of $5 million or more
  • Positive EBITDA or approaching acash break-even
  • Organic revenue growth (in excess of 10%) with recurring revenue base
  • Proven business model (established product/technology & reliable customer base)
  • High gross margins and low capital expenditures
  • Bootstrapped or minimal prior funding
  • Quality jobs and shared prosperity

Investment Characteristics

  • $2 to $5 million from Blue Highway Capital
  • Investments structured as preferred equity or subordinated debt
  • Meaningful minority ownership stake
  • Growth equity, expansion financings and recapitalizations
  • 3 to 5 years hold period

Investment Structures

We consider a company’s individual needs to tailor capital structures, which may include equity in the form of preferred stock for minority equity participations, or subordinated debt with warrant options, flexible amortization schedules, and flexible current vs. PIK interest.