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North Grounds Partners is a venture capital firm founded in 2023 by Pedro Timo and Jon McHattie, who collectively bring over 30 years of experience in investment, operations, and entrepreneurship. Based in the United States, the firm operates as a search fund, focusing on acquiring and managing businesses primarily in the B2B and home services sectors. Their investment strategy is centered around identifying fairly priced companies with stable business models, aiming for long-term growth through operational improvements.
The firm has a committed buy capacity exceeding $12 million and has completed its first acquisition of Royal Cleaners, a dry cleaning and laundry service, in January 2025. This acquisition marks a significant milestone in their investment strategy, demonstrating their active engagement in the laundry industry. North Grounds Partners is not a traditional venture capital fund; rather, it operates on an acquire-and-operate model, which distinguishes it from typical VC firms.
North Grounds Partners targets investments in the B2B and home services sectors, specifically seeking businesses that are fairly priced with valuations between 3-5 times EBITDA or Seller's Discretionary Earnings (SDE). The firm focuses on companies generating annual earnings between $250,000 and $1 million, emphasizing those with recurring revenues and stable margins. This focus ensures that their portfolio companies have a solid foundation for growth and operational improvements.
The firm prefers to invest in stable industries, where they can apply their operational expertise to enhance business performance. North Grounds Partners looks for companies that demonstrate a consistent revenue stream and a reliable business model, which aligns with their long-term growth strategy. Their check sizes range from $250,000 to $1 million, allowing them to support early-stage businesses effectively.
North Grounds Partners currently has one portfolio company:
Pedro Timo: Partner at North Grounds Partners, Pedro has a decade of operational experience in the B2B sector. He is focused on identifying and acquiring businesses with stable models. He can be contacted at pedro@northgroundspartners.com.
Jon McHattie: Partner at North Grounds Partners, Jon brings significant expertise in investment and operations, contributing to the firm's strategic direction and acquisition efforts.
To pitch North Grounds Partners, founders should reach out via email at pedro@northgroundspartners.com. It is important to include a comprehensive business plan that outlines financials, market potential, and growth strategies. The firm prefers detailed presentations that clearly articulate the business model and operational plans.
Response times may vary, but founders can expect to hear back within a few weeks. Warm introductions are beneficial but not mandatory.
In January 2025, North Grounds Partners completed its first acquisition of Royal Cleaners, marking their entry into the laundry industry. This acquisition highlights the firm's active engagement in the home services sector and their commitment to operational improvements.
What are North Grounds Partners' investment criteria?
North Grounds Partners focuses on businesses in the B2B and home services sectors, targeting companies with valuations of 3-5 times EBITDA or SDE. They prefer businesses generating annual earnings between $250,000 and $1 million, emphasizing recurring revenues and stable margins.
How can I pitch to North Grounds Partners?
Founders can pitch North Grounds Partners by reaching out via email at pedro@northgroundspartners.com. It is advisable to include a detailed business plan that outlines the company's financials, market potential, and growth strategy.
What makes North Grounds Partners different from traditional VCs?
North Grounds Partners operates as a search fund, focusing on acquiring and managing businesses rather than investing in startups with the intent to exit via IPO or M&A. Their approach emphasizes operational improvements and long-term growth.
What is the typical check size for investments?
The firm typically invests between $250,000 and $1 million in their portfolio companies, allowing them to support early-stage businesses effectively.
What is the geographic focus of North Grounds Partners?
North Grounds Partners primarily invests in businesses located in the United States, concentrating on the B2B and home services sectors.
What kind of support can portfolio companies expect?
North Grounds Partners provides operational expertise and strategic management to enhance business performance and drive sustainable growth in their portfolio companies.
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