SpringSt Capital

What They Buy

• Target: Vertical software businesses in Energy, Healthcare, and Real Estate
• Size: $2M - $10M Annual Recurring Revenue (ARR)
• Focus: Mission-critical products with recurring revenue models
• Structure: 100% or majority ownership acquisitions
• Geography: U.S.-based businesses only
• Approach: Long-term growth and scaling with operational expertise

Acquisition Criteria

Financial Requirements:

• ARR: $2M - $10M Annual Recurring Revenue
• Retention: 80%+ gross dollar retention
• Profitability: Positive operating margins required
• Growth: Consistent growth over 3+ years

Business Characteristics:

• Industry Focus: Energy, Healthcare, Real Estate verticals
• Product Type: Mission-critical software solutions
• Revenue Model: Recurring revenue preferred
• Market Position: Strong product strength and market position
• Tailwinds: Industries with strong market tailwinds

Owner Situation:

• Transition: Owner ready for 100% or majority ownership transition
• Readiness: Retiring or willing seller
• Location: U.S.-based business operations
• Process: Will work with businesses sold through brokers

Investment Philosophy

Founder-Centric Approach:

• “Founders come to us for deep operating expertise and long-term commitment”
• Focus on serving founders’ people, customers, and legacy
• Committed to guiding businesses through next growth phase
• Emphasis on preserving company culture and values

Operational Excellence:

• Deep operating expertise in vertical software
• Focus on capital efficiency and customer retention
• Long-term commitment to business development
• Strategic guidance for scaling operations

What Makes Them Different

Vertical Specialization:

• Focused expertise in Energy, Healthcare, and Real Estate sectors
• Understanding of industry-specific challenges and opportunities
• Tailored approach based on vertical market dynamics

Growth-Oriented:

• Committed to scaling businesses to next stage of development
• Operational resources and expertise for expansion
• Long-term perspective on business growth

Founder Legacy:

• Emphasis on preserving founder vision and company culture
• Long-term commitment to existing teams and customers
• Support for business continuity during ownership transition

Benefits for Founders

Strategic Partnership:

• Deep operating expertise in vertical software markets
• Long-term commitment beyond just financial investment
• Focus on preserving and building upon founder’s legacy

Operational Support:

• Expertise in scaling vertical software businesses
• Resources for next phase of business development
• Guidance on capital efficiency and customer retention

Transition Flexibility:

• Will consider 100% or majority ownership structures
• Work with businesses going through broker processes
• Focus on smooth transition that preserves business culture