approach
We lead expansion stage rounds with smaller, more flexible investment amounts, filling a much needed gap in the market for expansion stage capital.
We founded Harmony Partners to better serve today’s capital efficient companies. Innovative companies continue to develop creative ways to “do more with less” but traditional expansion stage funds are increasingly out of touch with these new market realities. Many of these funds have grown too large, often needing to invest a minimum of $10 million or more in new portfolio companies.
Harmony believes a new investor’s target investment amount, or desired ownership percentage, should have no bearing on the size of a round, nor how it is allocated between new and existing investors. Some of the most promising companies need significantly less than $10 million for their next financing. Others may require more than $10 million, but existing investors want over half the round. Why should entrepreneurs be encouraged to take more capital than their business model requires? Harmony eliminates the tension over round size and split.
While our average investment size may be small, our value-add is large. We are active, experienced investors who take pride in assisting our portfolio companies in the field, not just at board meetings. We build relationships with promising companies long before the next financing so that we are able to issue binding term sheets prior to a lengthy capital raising process. Our proactive model and streamlined diligence saves management significant time and effort to better focus on the core business.
As expansion stage investors, we typically invest after a company has released its product/service and secured initial customers. Our capital usually funds sales and marketing investments to rapidly scale the business. Revenues can be modest, but projected growth must be bold. We gravitate to highly disruptive businesses with compelling value propositions. As a bi-coastal firm, we invest nationally, and are purposely geography-agnostic when it comes to partnering with emerging market-leaders.