Second Alpha focuses its investment activities on private companies with proven business models, solid product offerings and good prospects for future growth. Companies that fit Second Alpha’s maturity criteria include
- Mature venture-stage, growth equity and middle market firms
- Companies with at least $20 million LTM revenues
- Companies either profitable or with a defined path to profitability
Second Alpha is particularly interested in companies that have a large portion of their businesses based on highly-recurring revenue models (e.g., subscriptions, term licenses, highly-recurring transactional models, etc.).
Second Alpha invests in companies operating within Technology, Media and Telecommunications (TMT) .
Second Alpha primarily invests in companies headquartered in the United States and Canada. Occasionally, Second Alpha will consider investments in private companies headquartered in other countries.
Second Alpha is very interested in the following types of transactions:
- Purchases of partial or full shareholder positions from founders or company management
- Purchases of partial or full shareholder positions from angels, VCs, corporate investors or private equity firms
- Purchases of convertible debt
- Leading or participating in rounds of fresh capital in tandem with a purchase of shares from existing investors
- Recaps, pay-to-plays and restructurings
In addition, Second Alpha will consider purchasing portfolios, partial portfolios or specific strips of direct venture investments from investors seeking short-term liquidity.