A trend I want to see more of:

Hungry operators scaling what they uniquely do well, to build a portfolio/holdco of long-term companies

Supported by permanent growth capital (NOT supercharged VC or inflexible/impatient private capital)

I call this “bootwrapping”

How does it work?

Bootwrapping = “wrapping” a strong operator/investor with outside resources, capital, team, know-how, and network to build a concentrated portfolio of great companies, but they are scrappy like a bootstrapped founder would be

It could be operators/investors who:

- own a business and want to use as a platform for a long-term holdco
- invest/operate via a strategy that works on their own now, but wants to ramp what they’re doing, or
- branch off from their bigger firm looking to build their own book

Paired with a permanent capital group who brings flexible, patient capital to support them in scaling their strategy and “growing the pie” together

For example...

The types of operators/investors that come to mind outside of lower MM SMB buying:

- acquiring a portfolio of bootstrapped Software/SaaS businesses (e.g., B2B SaaS w/ $50-150K MRR)

- overlooked/smaller real estate deals (e.g., MFH, MHP, storage,,,)

Bootwrapping is “arming the rebels” & a unique opp for someone who wants to:

- do more of what theyre currently doing, but w/ more resources/team behind them
- stay entrepreneurial & keep a flexible inv mandate
- build a LT portfolio & own the economics

I love talking w/ other builders and bootwrappers who aren’t following the conventional path, building something they’re proud of, and “obsessed”

If you (or someone you know) does this or wants to do this... DM or reach out