WHAT IS A TYPICAL MEWA CAPITAL & PARTNERS (MC&C) INVESTMENT?
Mewa Capital & Partners firms concentrate their investments in a handful of industries and look for very specific characteristics. Below is an overview of the typical MC&C target:
- Investment Characteristics
Mewa Capital & investors are very selective in deciding what to invest in, and will only pick one company among several hundred or more, as companies that combine the ideal characteristics are very rare.
- Young Companies with a Proven Concept
The company has a proven concept but lacks the infrastructure and professional management to grow successfully. The company is usually only a few years old (sometimes few months old).
- (Very) High Growth
Ideal targets are firms that have products or services that are just "catching up" and are at the very beginning of potential explosive growth. Mewa Capital money is then used to fund internal growth, mostly intangible investments such as research and development of products as well as marketing expenses. Mewa Capital money is never used as "exit money" for the founders.
- Big Potential
Given the high rates of business failure, MC&C funds generate a good portion of their returns from very few investments that have enormous returns. Big potential means not only fast growth, but also substantial target market size, scalability ( low cost of expanding the software products), and specific competitive advantage. The key question is: can this company be sold in three (3) to seven (7) years and generate 10 to 20 (or more) times the initial investment?
- Privately held
Targets are private companies owned by one or a handful of founders.
- Industries
Other industries include software, fashion, sports, incensing, services, IT services, business services, consumer products, industrial services and industrial products, healthcare services, and retailing.