Sector Focus. We are solely focused on the U.S. Federal Government Services market, particularly companies providing technology-enabled solutions and services.
From agile, scalable software development teams, to cloud migration for IT infrastructure, to critical mission operations, to next generation cybersecurity, to systems engineering and subject matter expertise, we seek out companies delivering differentiated capabilities across the entire Federal Government customer landscape. Blue Delta has deep experience and perspective across the ecosystem, including Defense, Intelligence, Homeland Security, Health, and Civilian agencies.
Management Partners. We are partners to our management teams. We always invest equity and own shares alongside our teams. We always own less than 50% of a company. Blue Delta does not buy companies and replace management teams, rather we empower the team that is already in place, often working with the CEO to augment their team as they grow.
As venture capitalists investing in solutions and services companies, we structure a close alignment of incentives with our management teams and then endeavor to act as coaches and scouts to these teams, serving as a sounding board on key decisions that business owners in our sector face every day. We are force multipliers, not additional links in the chain of command.
The entire Blue Delta team is experienced in rolling up our sleeves to recruit talent for our companies, red team key contract bids before they go in, identifying and helping to close tuck-in acquisitions and connecting with channel partners and customers.
Flexible Funding. From helping to fund tuck-in acquisitions, to supporting the founders in taking a little money out of the business, to buying out shareholders who are no longer involved in the business, or leaning into increased bid and proposal investments and key talent additions beyond what indirect rates will bear, Blue Delta’s capital can be used for a wide range of growth objectives.
Similarly, we know that growth stage companies hit bumps in the road, and that crossing the chasm from subcontracting and small business set-asides to prime contracts that are full and open can be challenging, but for those elite teams that have embarked on that course, we are here to help increase the speed and certainty of achieving those goals.
Size Matters. While there is no “one size fits all policy” and every investment is unique, we seek to initially invest at least $10 million in each portfolio company, and we have the capability to continue investing in the company as it grows, allowing us the potential to ultimately invest a total of $20-$30+ million of equity into the right opportunities.
As partners in building growth companies, the keys for us are matching the size of the investment to the use of proceeds to the market opportunity and the post-deal ownership structure, in order to ensure close alignment of incentives among all shareholders. Our focus at Blue Delta is where your backlog and pipeline are taking you, not how much debt your trailing twelve months of EBITDA can support. Finally, with regard to valuation, we seek to invest in great companies at good prices, not the other way around.