What types of companies does Montlake invest in?
Sectors: We focus on three primary sectors in which the Firm has unique knowledge, experience and a history of success. By focusing on sectors where the firm has demonstrated expertise, we are able to leverage our knowledge and skills to provide meaningful strategic and operational support.
Geography: We target opportunities in the Northwest, but will consider investments in the broader Western U.S.
Stage: We invest in rapidly growing small and medium-sized companies with annualized revenues of $5-$50 million.
What type of transactions will Montlake consider?
We are flexible in our approach and will consider growth equity, venture capital, shareholder liquidity, recapitalizations and leveraged buyouts.
Does Montlake partner with other venture capital/private equity firms?
We carefully select investment partners to leverage complementary expertise, and will co-invest with firms that add operational and strategic value. We have successfully partnered with both regional and national firms.
What key characteristics does Montlake look for in target investments?
Management Teams and entrepreneurs must have passion for what they do in addition to deep domain expertise and the demonstrated ability to attract and retain talented people. They must also be able to effectively collaborate and communicate with investors and board members.
Business/Market Opportunity – Management teams should be able to clearly articulate their company’s “reason for being.” What current problem is the company solving and why will customers pay for the solution? Is the company in a unique position to deliver the solution in a way that is not easily replicable? Is the addressable market large enough?
Financial Model – Our investment team focuses on 18 – 24 month operating plans versus five-year projections. We look for sustainable revenue models with gross margins that allow the company to scale and achieve profitability within a reasonable amount of time. Management teams must be able to demonstrate financial discipline and a deep understanding of the revenue cycles and cash flow characteristics unique to their industry. We especially value teams that have invested a meaningful amount of personal net worth into the company, and treat every dollar as if it were their own.
Return Potential – Montlake targets financial returns typical of the venture capital and private equity markets. We invest in markets where multiple paths to liquidity exist (M&A, IPO, recapitalizations, etc.) within a three to seven year time frame. Management should be prepared to discuss recent transaction activity within their market segment, industry multiples and most likely acquirers.
How involved is your investment team after the investment is made?
Our partners have a depth of operational and investment experience from founding and growing companies and serving as senior operating executives in entrepreneurial organizations. We pride ourselves in being extremely accessible to management and will provide strategic guidance and/or tactical support as needed. In almost all cases we have a seat on the board of directors and will assist management in recruiting additional directors and operational talent.
How do I submit a business plan?
Please call our office as the first step in submitting your business plan.
The materials required for the initial review include:
- Executive summary and/or most recent PowerPoint presentation.
- Biographical summaries for management and board of directors/advisors
- Historical financial statements and an 18-24 month financial plan
Download Investment FAQs.
