Pre-IPO Investment Criteria
Keating Capital is a closed-end fund (organized as a Business Development Company) that specializes in making pre-IPO equity investments in innovative, high growth companies that are committed to and capable of becoming public. We have three core investment criteria:
- Revenue: $10 million+ in trailing twelve months revenue.
- IPO Timing: Expected to complete an IPO within 18 months of the date of our private investment.
- Potential Return: Seek to make investments at valuations that create the potential for a 2x return over an anticipated 3-year holding period. If investment horizon is less than 3 years, targeted return may be correspondingly reduced.
If you are a private company (or retained adviser) seeking equity capital and meet all three of the investment criteria listed, please submit an executive summary and investor presentation to submit@keatingcapital.com.
Structure of Growth Capital Investments
Keating Capital provides growth equity capital directly to issuers and will also purchase equity securities in secondary transactions from existing stockholders. The key structural aspects of our investments are set forth below:
- Participation: Willing to lead or participate in pre-IPO round.
- Investment Size: Typically $3-5 million (and typically in convertible preferred stock).
- Investment Decisions: Within 30 days (after access to complete due diligence materials).
Industries
Though we will consider investments in a broad range of growth industries, we focus on the following industries:
Areas of interest:
- Cleantech
- Internet & Software
- Technology
Areas of no interest:
- China
- Reverse Mergers
- Real Estate & Construction
- Mining & Exploration
- Start-ups or Roll-ups
Equity Partners for Companies Primed to Become Public
Keating Capital’s value proposition to our private company partners includes the following:
- Speedy decision making. We are speedy and decisive throughout the review and due diligence process. (Click here to see our typical investment timeline.) Additionally, we act as passive equity capital partners backing superior management teams who are doing great things.
- Unique shareholder base. We have approximately 4,000 individual shareholders sourced from the 50+ independent broker-dealers that participated in Keating Capital’s own initial public offering.
- Capital markets experience. We have comprehensive capital markets experience and are able to offer advice on the going public process and public capital markets.
Investment Timeline
Keating Capital typically makes investment decisions within 30 days after receipt of complete due diligence materials. We execute and fund promptly.
