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Strategic Growth Capital
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Strategic Growth Capital

Published on 30/01/2023
Contributor(s): Jean-Marc Legrand

TheClubDeal is a Venture Capital & Private Equity Firm strongly driven by applied governance principles.

What is growth capital?

Growth capital is, by essence, capital willing to support tangible and intangible growth. It shall therefore finance investments, generally in sales and development, rather than finance working capital. In the glossary of TheClubDeal, it is a match for our targeted segment: the scale ups. Indeed, scale ups have revenues, proven traction and competitiveness and we seek those in search of capital so to finalize a bridge to structural profitability [1] and organic growth.

What is strategic capital?

Strategic capital is capital that is entrusted to companies and their entrepreneurs but that will be made more valuable thanks to strategic implication in the governance. The mantra of Private Equity firms like TheClubDeal is to bring entrepreneurial expertise to the entrepreneurs.

We do that by several methodologies and strive to make those an add value for the companies rather than a burden.

As a preliminary, it is not advisable to confuse strategic and operational implication. Operational steering remains the executive management’s “turf”.

Strategic end entrepreneurial governance: methodologies

  • Governance mechanics: implementing a good governance scheme is an absolute need for entertaining a positive understanding of the company and an alignment between all the executive and non-executive stakeholders intervening at various levels of governance (General Assembly, Board of Directors, Management Committees, ad hoc committees (audit, remuneration, ESG, etc.). We recommend establishing a scheme that will be repetitive so to be sure not to miss a subject at the regular meetings.
  • Dividing the year, for governance purposes in “highlights” delegated to “persons in charge” in the said body. We advise, for instance to have 1) yearly budgeting and fixing of metrics (operational and financial KPI’s) 2) strategic planning revision (multi-year strategic plan) 3) regular competitive watch and market studies.
  • Competencies: it is obvious that good managers will surround themselves with strong expertise in various fields so to beneficiate of supports in necessary areas. This can be done through various schemes: advisory board, independent members to some Boards or committees, etc.

Our mantra: supporting local eco-competitiveness and creating local lasting value and jobs.

Capital is like the fuel in a car. It helps the company run. Strategy is like a turbo for the engine: it helps to grow faster and steadier. The entrepreneurs that have founded TheClubDeal have decided to reinject the capital they made into the local economy (rather than a possible investment, for instance, in real estate or banking products) with 2 purposes and reasons:

  • Fostering local value for the next entrepreneurial generation is a citizen responsibility, and,
  • the local nature of these ventures makes our strategic support more natural and accessible.

In summary

Do not hesitate to contact us!

[1] There is an exception in the three sectors we support: life sciences. Indeed, for this sector, capital will often be development capital supporting the search for “product market fit” by means of regulatory authorizations.

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