Europe is home to many thousands of well-established niche software businesses, which are successfully solving customer challenges in markets from construction to finance, healthcare, manufacturing, agriculture, food production and processing.

For their founders, there inevitably comes a time when they must consider what’s next. From an investment standpoint, these companies are often overlooked by traditional models like Private Equity or Venture Capital. But such niche software businesses can benefit from the tremendous growth opportunities offered by other investment models – such as Permanent Equity.

Great deals for great companies

I’m often asked what Upliift looks for in the companies it invests in:

• A large share of a specific niche market. We look to acquire successful European software businesses who are leaders in their markets, with a particular (but not exclusive) focus on those in: AgriTech, niche financial services, utilities, healthcare, and pharmaceuticals.
• Mission-critical solutions. The software businesses that interest us most offer Enterprise-wide, mission-critical software solutions that orchestrate and automate very complex workflows. If the software stops working, customers basically cannot operate their businesses. These are rarely product-only businesses but are recognised as go-to centres of excellence in their respective industries.
• The right size. Upliift businesses typically have revenues between €1m-€25m, are cashflow positive, boast recurring revenues, and enjoy modest growth (with the potential for more). We aren’t interested in “unicorns” on an unsustainable growth streak.
• Founder owned or managed, where the founder is considering a full or partial exit in a way that’s right for them and their business.
• A reputation for customer-centricity. Upliift businesses go out of their way to understand their customers and respond to their needs.They have low customer turnover and impressive referral rates.
• A great culture where employees thrive, sharing a passion for the business and understand the value they contribute.

What can founders expect in return?

• Fair deals and flexible terms: We pay fair prices for quality businesses and can flex the initial stake we take to suit the requirements of existing shareholders. We are well-funded and have capital available to complete acquisitions quickly.
• A long-term approach: We are not in a rush. Unlike private equity firms, we buy software businesses with no intention of reselling them. Our goal is to build a unified portfolio of European software businesses with considerable long-term growth potential.
• Preserving what makes your business different: We keep our portfolio companies independent and empower their management. We will respect the DNA that has driven your company’s success to date and will work to maintain its unique culture and identity.
• European team and culture: We are 100% focused on European software businesses. Our team is present in most major countries in Europe, speaking the local languages. We can work with you locally in person to build and execute a joint vision and plan.
• Tried and tested software expertise: We are software people through and through. We only work with niche software companies. We combine real skill in onboarding companies like yours with a management playbook which facilitates long-term growth.
• A strong network: Benefit from access to proven software experts from across our extensive network. Its expertise covers every aspect of software business management, from go-to-market, product management, and finance, to engineering and people.

If this sounds like your business please contact me directly, or read more to find about our investment approach.