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.
Iteration Capital is a private investment fund founded by a team of data scientists, engineers, and operators. Established with a focus on acquiring private companies, Iteration Capital intends to hold these investments indefinitely. The firm operates primarily in North America, specifically targeting the Midwest region of the United States. Their unique approach distinguishes them from traditional private equity firms, as they emphasize a permanent capital model.
Currently, Iteration Capital manages a portfolio that includes one notable company, Keysearch, a software business specializing in SEO keyword research. The firm utilizes its expertise in data science and proprietary datasets to identify businesses positioned for growth across various sectors, including logistics, healthcare, technology, academia, and finance. This strategic focus allows Iteration Capital to leverage data-driven insights for both deal sourcing and post-acquisition growth.
Iteration Capital invests in both software and non-software companies, with specific investment criteria tailored to each category. For software companies, the firm targets those with revenues between $1 million and $20 million and an EBITDA ranging from $1 million to $5 million. This focus allows them to identify scalable software solutions that can benefit from their data-driven approach.
In contrast, for non-software companies, Iteration Capital seeks businesses with revenues from $1 million to $50 million and EBITDA between $1 million and $10 million. Their geographic focus for these investments is primarily within the Midwest, encompassing states such as Minnesota, Wisconsin, North Dakota, South Dakota, and Iowa. This dual approach enables Iteration Capital to diversify its portfolio while maintaining a strong emphasis on data science and growth potential.
Iteration Capital has made a significant acquisition in the software sector with Keysearch, a company that specializes in SEO keyword research. Keysearch serves over 10,000 customers, demonstrating its market presence and the potential for further growth. This acquisition aligns with Iteration Capital's strategy of investing in companies that are well-positioned for expansion.
While Keysearch is the only company currently listed in Iteration Capital's portfolio, the firm’s focus on data-driven growth strategies suggests that they may pursue additional acquisitions in the future, particularly in the logistics and healthcare sectors.
To pitch Iteration Capital, founders should utilize the contact form available on their website at iterationcapital.com/contact. It is important to include comprehensive details about the business, including financial performance, growth plans, and how the company aligns with Iteration Capital's investment criteria.
Founders should expect a response time that may vary based on the volume of inquiries, but providing clear and concise information will facilitate a quicker review process.
What are Iteration Capital's investment criteria?
Iteration Capital invests in software companies with revenues between $1 million and $20 million and EBITDA of $1 million to $5 million. For non-software companies, they target businesses with revenues from $1 million to $50 million and EBITDA between $1 million and $10 million.
How can I pitch to Iteration Capital?
Interested parties can fill out a contact form available on their website at iterationcapital.com/contact. It is advisable to include detailed information about your business, including financial metrics and growth potential.
What makes Iteration Capital different from traditional private equity firms?
Iteration Capital distinguishes itself by adopting a permanent capital model, intending to hold investments indefinitely rather than seeking quick exits. This long-term approach allows them to focus on sustainable growth.
What geographic areas does Iteration Capital focus on?
The firm primarily invests in the Midwest region of the United States, specifically targeting states such as Minnesota, Wisconsin, North Dakota, South Dakota, and Iowa for non-software companies.
What kind of support does Iteration Capital provide to its portfolio companies?
Iteration Capital adds value to its portfolio companies by sharing proprietary data for market mapping and customer acquisition. They employ data science and AI techniques to drive growth post-acquisition.
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.