After spending close to seven years at Encore and TSG Consumer Partners focused on private- equity investing in lower middle-market consumer products companies, I noticed a huge void in the marketplace. There were no institutional investors for small consumer brands. Almost every week, two or three consumer entrepreneurs would call me, looking to raise capital. For companies with revenues under $10 Million, there was nothing we, or any of the other funds I knew, could do. Because of this, each conversation ended the same way, with me turning them down without being able to give them another source to turn to, as they were too small for institutional equity and did not have sufficient assets to raise debt.
Via Berend de Jonge, EarlyShares