Discover if this is a suitable investor for your startup. If they are we'll make a warm introduction for free. Otherwise, we'll connect you with matching investors.
Five Elms Capital is a growth equity firm founded in 2007 and headquartered in Kansas City, Missouri. The firm focuses on investing in lower-middle-market B2B software companies, providing both capital and operational support to help these businesses scale effectively. With over $3 billion in assets under management, Five Elms has backed 79 software platforms, emphasizing a strategy that targets companies with proven business models and strong customer loyalty.
Over the years, Five Elms has evolved its investment strategy to focus on fast-growing, founder-owned companies that demonstrate strong customer loyalty. The firm has successfully closed multiple funds, with its latest, Fund VI, raising $1.1 billion in October 2024, marking the largest fund in its history. This fund was oversubscribed and significantly expanded the firm's limited partner base.
Five Elms Capital employs a team of over 80 professionals, including 17 in-house software operators who provide operational support in areas such as executive recruiting, finance, sales and marketing, customer success, and product development. This operational expertise differentiates Five Elms from traditional financial investors.
Five Elms Capital invests primarily in founder-owned B2B software companies, typically committing between $15 million and $150 million per investment. The firm is flexible regarding ownership stakes, often taking both majority and minority positions. Their investment strategy emphasizes backing companies that are challengers to established incumbents, possess strong company culture, and offer must-have products with proven retention rates.
The firm seeks to provide both founder liquidity and growth capital, focusing on companies that have demonstrated strong customer loyalty and a solid business model. Five Elms Capital looks for businesses at a growth inflection point, where their operational support can significantly enhance scaling efforts. Their investment thesis is centered around the idea of investing in
Five Elms Capital has a diverse portfolio of notable companies, primarily in the B2B software sector. Key portfolio companies include:
These companies exemplify Five Elms Capital's focus on investing in innovative B2B software solutions that address critical market needs.
Fred Coulson - Founder & CEO, has extensive experience in venture capital and has led numerous successful investments in the B2B software sector.
Ryan Mandl - Partner, specializes in growth equity investments and has a strong background in operational support for portfolio companies.
Joe Onofrio - Partner, focuses on identifying promising investment opportunities and has a track record of successful exits.
Stephanie Schneider - Partner, brings expertise in financial operations and strategic planning to the firm.
Thomas Kershisnik - Partner, has a background in technology investments and works closely with portfolio companies to drive growth.
Randy Cox - Managing Director, Value Creation, leads the Operational Value Creation team, providing hands-on support to portfolio companies.
Jack Caffrey - Principal, Value Creation, focuses on operational improvements and strategic initiatives for portfolio companies.
David Barnthouse - Principal, Financial & Investor Operations, manages financial operations and investor relations.
Brooke Goebel - Vice President, supports investment activities and portfolio management.
Grace Trahan - Growth Investor, specializes in identifying growth opportunities within the portfolio.
To pitch Five Elms Capital, founders should submit their proposals through the contact page on the firm's website. A comprehensive pitch deck is essential, including details about the business model, market opportunity, and team background. The firm values clarity and thoroughness in presentations.
Response times can vary, but founders should expect to hear back within a few weeks. Warm introductions are preferred, as they can facilitate a more favorable review process.
Five Elms Capital operates a portfolio community platform called **Branch Out**, which connects leaders from their portfolio companies to share advice and ideas. This program fosters collaboration and allows portfolio companies to learn from each other's experiences.
The firm also has a dedicated Operational Value Creation team that assists portfolio companies in various operational aspects, including talent acquisition and go-to-market strategies, ensuring that they have the necessary support to scale effectively.
In recent months, Five Elms Capital has continued to expand its portfolio, focusing on B2B software companies that align with its investment thesis. The firm recently announced an investment in **Prismatic**, a B2B software integrations platform, further solidifying its commitment to supporting innovative software solutions.
Additionally, Five Elms Capital has highlighted its operational support initiatives through its **Branch Out** community platform, which connects leaders from its portfolio companies to share insights and best practices. This initiative aims to enhance collaboration and knowledge sharing among portfolio companies.
What are Five Elms Capital's investment criteria?
Five Elms Capital focuses on founder-owned B2B software companies, typically investing between $15 million and $150 million. They look for companies that challenge established incumbents and have strong company culture and proven product retention rates.
How can I pitch to Five Elms Capital?
Founders can reach out through the contact page on their website. A well-prepared pitch deck should include details about the business model, market opportunity, and team background.
What makes Five Elms Capital different from other firms?
The firm provides operational support through its dedicated Operational Value Creation team, assisting portfolio companies with talent acquisition and go-to-market strategies, which sets them apart from many other growth equity firms.
What is the geographic focus of Five Elms Capital?
Five Elms Capital primarily invests in companies based in the United States, focusing on the B2B software sector.
What is the typical post-investment involvement of Five Elms Capital?
The firm actively engages with its portfolio companies, offering operational support and strategic guidance to help them scale effectively.
What is the size of Five Elms Capital's funds?
Five Elms Capital typically commits between $15 million and $150 million per investment, indicating a significant fund size aimed at supporting growth-stage companies.
All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks, and brands does not imply endorsement.