venture capital orphans targeted by new special fund for headquarters
On Monday, an unusual new venture capital fund announced its existence. MBM Capital, headquartered in New York, was started by two industry veterans, with the aim of filling a void in the private capital market to control investments and operational revitalizations of companies in the venture capital phase ” orphans ”by their venture capital or their sponsors. This “special situations” investment strategy was designed by MBM Capital to “take advantage of the structural inefficiencies of the venture capital model” and is intended to complement the venture capital part of institutional portfolios.
MBM Capital was founded by long-standing management partners of VC Lauren Bonner and Arun Mittal, whose combined history of over 35 years of successful business exits includes a sustainable real estate investment trust Power REIT, crypto derivatives platform LedgerX, Shinsei Bank, consumer price optimization platform Paribus, and Swedish fintech Klarna.
The 88 percent
“Where others are looking for unicorns, MBM Capital looks for thoroughbreds and workhorses,” said the co-founder and CEO of MBM. Lauren Bonner. “In a business environment where 88% of startups fail to reach a Series C round of funding, MBM Capital is a solution for founders of income-generating companies whose growth trajectories or operational challenges have become competitive barriers for the continued attention and capital of venture capitalists. We’re also a natural option for businesses and sponsors under increasing pressure to sort their resources over their most likely bets and look to prune their portfolios. “
“With the rapid evolution in recent years of the ‘unicorn or bust’ venture capital model, we believe that the opportunity to acquire and revitalize attractive orphan companies at the venture capital stage is both structural. and sustainable, ”said the co-founder and CEO. Arun Mittal. “We know firsthand the power of combining capital, talent, operational know-how and responsibility to generate sustainable growth and shareholder value. We believe that MBM Capital is closing a significant funding gap in the venture capital markets and we look forward to supporting incredible teams on their value creation journey.
MBM Capital targets fintech, HR technology, consumer and data companies with business products, resilient revenues and supportable teams. The fund specializes in finding, identifying and structuring investments, recruiting and capitalizing top talent, scaling, restructuring and catalyzing profitable growth, and engineering attractive outputs.
Bonner was previously an operating partner of the controlling venture capital firm 1/0 uppercase, where she focused on the firm’s sponsorship and deep engagement in companies such as Best mortgage and Paribus, and seek the company’s first investments in the corporate bond trading platform TruMid; a manager at Bridgewater Associates; and a senior manager at Point72. A Harvard College graduate, she remains a partner at 1/0 Capital and angel investor with a focus on the founding women.
Mittal, engineer by training Stanford University and Georgia Institute of Technology, was previously CEO of JC Flowers- and Ripplewood-backed Shinsei Bank we investment subsidiary; member of the founding team and EVP of NYSE-traded Power REIT; CEO of 1/0 capital-backed consumer credit big data companies PhoenixABS and LeNombre.com; president of StoneCastle Asset Management; and, more recently, Senior Advisor to Klarna and LedgerX.