Very few companies get where they are going in a straight line. Business milestones and financing rounds get out of synch, resulting in companies that need money at the wrong time. Good companies with good syndicates often misjudge their capital requirements as M&A markets ebb and flow. Furthermore, the majority of growth stage companies, including many successful ones, miss sales forecasts. The result is that fundraising becomes problematic. Early stage investors with 7-year investment horizons and 10x return expectations are not appropriate for mature growth stage businesses, and the increasingly large minimum investment requirements of many late stage investors will swamp a company’s cap table.
Glidepath principals bring the flexibility and experience required to make investments in mature growth stage companies. Glidepath seeks deals where it can catalyze inside investment and reinvigorate management’s ambitions for a rewarding exit.