Rocky Point Ventures

Overview

Rocky Point Ventures, established in 2006 as a private family office in Austin, Texas, focuses on early-stage investments in technology and biotechnology startups. The firm has recently expanded its strategy to include buyout opportunities, targeting lower-middle market businesses in Texas and the Southeast US. Rocky Point Ventures seeks to acquire companies with purchase prices between $5 million and $20 million and EBITDA ranging from $1.5 million to $4 million. The firm is particularly interested in manufacturing, distribution, and wholesale industries, emphasizing businesses with high gross margins, strong brands, unique technological advantages, and high barriers to entry. Rocky Point Ventures is guided by principles of effective use of experience and contacts, focusing on a small number of deals to add value, and deploying patient capital with the goal of producing long-term value in portfolio companies. The firm is not in the business of flipping companies, and its management style reflects this long-term philosophy. The team has direct knowledge in a wide variety of industries and concentrates on fewer deals to devote more time and energy to adding value. They believe in growing a business and invest with the intention of increasing market share, not investing in 'lifestyle businesses'.

Investment Focus

• $5 million to $20 million purchase price
• $1.5 million to $4 million EBITDA
• High gross margins
• Differentiated business with strong brand, unique technological advantage, exclusivity agreements, or high barriers to entry
• Open to businesses in niche markets with high customer concentration and/or small total market size as long as the company is a market leader in the niche
• Strong management team that will stay in place
• Low tech business that can be explained in two sentences or less
• Owner/founder seeks to retire, reduce full-time responsibility, or create liquidity