PROPELLER
To drive, or cause to move, forward or onward.
Social Impact Ventures launched Propeller to accelerate black and brown founders, entrepreneurs and business owners. Propeller provides the tools, assistance and support to help them accelerate and grow their business.
We invest our real world operating experience and our own capital to businesses and revenue models we think have potential to scale and catalyze change.
What do you get from Propeller?
We are a group of individual investors who buy minority stakes in profit-driven internet businesses. We aren’t venture capitalists hunting unicorns, we are not a fund, and we are not aiming for growth at all costs. Instead, it is best to think of Propeller as an experienced potential long-term partner for you and your business with a profit-first mentality.
We are open to acquiring anything from 5% to 50%
of a business that is a good fit for our group.
How we work
After finding the ideal business, we write the founder(s) a check, bring in our experienced marketers and advisors to help the business grow, and then stay out of your way and let you do what you do best: run the business how you see fit.
Frequently Asked Questions
Q: Will you buy 100% of a business?
No. We believe you, the owner, are best at running the day to day of businesses. Our job is to accelerate your growth and profitability. That is what we do best.
We are open to acquiring anything from 5% to 50% of a business.
Q: How much do you typically invest?
It’s a broad range, with a lot of factors being considered. Generally everything from low $xx,xxx to mid $xxx,xxx. The lower the investment amount the less ongoing time we are able to allocate to a deal (time is a finite resource after all). The higher the investment amount the more co-investors we might pull in on the deal.
Q: What types of valuations do you give to businesses?
We’re aiming to be very fair here. Each business is very different, but on average we would value your business the same way a business broker would.
Q: How do you get paid?
We get compensated with profit distributions and/or the eventual full exit of the business. We would be on the same terms as the founder/owner on a pro-rata basis.
Q: How are we different from traditional venture capitalists?
We write a check directly to the founder, not to the business.
We are not concerned with “growth at all costs”. We have a profit-first mindset, growth comes secondary. Small little businesses suit us just fine.
Quality of life is high on our list of must-haves. (What’s the point otherwise?)
Q: Do I need to plan on “an exit”?
Nope. If you want to hold the business forever, or plan for a full exit 6 months from now, we’ll support you either way (and advise you on what we think would be best).
Q: Why are you focused on “Lifestyle Businesses”?
First off, to me the term Lifestyle Business doesn’t mean small, financially speaking it just means that it is not designed to reach venture scale.
There are a few reasons, but the biggest is that we really enjoy working with owner/operators. We have found that most owner/operators are interested in making money, but on average the goal wasn’t just to have more for the sake of having more, but to allow for a life of more personal freedom, health and happiness through the pursuit of business.
Q: Will you invest if the business is not yet profitable?
Most likely no, but it doesn’t hurt to reach out and ask. There are exceptions to every rule.
Q: How much time will you spend on my business if we partner?
That’s a tough one and unfortunately the reality is that it depends on the business. Some will need more help, some not as much. In a “typical” situation, we spend a fair amount of time with you during the first couple of months, and then taper it down to a scheduled call once or twice a month (or when needed) afterwards.
Q: Do you only fund technology companies?
No, we are industry agnostic. We have worked with service to product companies and everything in between.
Q: Where does your capital come from?
We work with “committed capital” from select private investors on a transaction by transaction basis who share our goal of maximizing invested capital and social impact.
Community
We know how difficult it can be to be black and launch, build and grow a company. Propeller fosters a community of founders, entrepreneurs other people to enhance your capabilities and efficacy. Our community is an extremely valuable resource.
Hands-on Support
We work together on your business and revenue model, product strategy, growth, key performance indicators, and investor pitches.
Advice
You get access to a network of founders, mentors, and our team, who will give you guidance when you need it the most.
We have built startups, scaled businesses and raised capital before. We make sure you don’t make the same mistakes we did.
Networks
Thanks to our extensive network, companies build relationships and partnerships that wouldn’t be possible at their size without us.
Simply put we have connections. Our goal is to connect you to what you need within 3 phone calls.
Learning
We bring in a wide variety of experts focused on marketing, culture, accounting, product design, mobile, user testing, sales, and more.
Investment
Being a Social Impact Venture company will validate your business, and our network and crowdfunding platform will help you connect with investors when the time is right.
Our Demo Day is a great opportunity to meet and pitch people who might invest in you.