TANDEM

About

Tandem Expansion is a private growth capital fund seeking to invest in small and mid-sized Canadian companies in a variety of technology-based sectors. Tandem will act as a catalyst for growth and expansion by making targeted investments in companies with high growth potential and strong management teams.


Source: Tandem

Strategy

Tandem is looking to partner with fast-growing Canadian technology companies with dynamic management teams. Following are Tandem’s main investment criteria:

Main Geographic Location: Canada

Our mandate is to invest in Canadian companies, thus the companies we invest in are either headquartered in Canada or have principal operations in Canada.

Sector Focus: Technology

We can invest in the following sectors: Information Technology (Hardware, Software or Services), Clean Technology, Energy and Resource Technology, Advanced Materials, Technological Innovations in traditional industries and Life Sciences.

Stage of Maturity: Later Stage

Our objective is to propel businesses to the next step. Later-stage opportunities typically have $5 Million – $50 Million in revenues with proven products and a variety of referenceable customers. Companies typically need capital to expand into new markets, launch new products and invest in technology.

Investment Size: $10 Million – $30 Million

Our goal is to invest $10 Million – $30 Million per investment. Beyond $30 Million, we have a number of third parties who we work with including our limited partners, venture capital funds from around the world, financial institutions, and high net worth individuals.

Use of Proceeds: Organic Growth or Acquisition Capital
We are typically looking to accelerate growth in a company, either through organic growth or acquisition capital. We therefore mainly invest in the form of primary shares, but have the flexibility to complement such investment with the purchase of a portion of secondary shares as a means to provide some liquidity to the existing shareholders.

Ownership: Meaningful Minority or Control

While we seek a meaningful stake in the companies we invest in, we prefer to remain minority shareholders. In certain circumstances, we will consider control positions. We would like to see founders retain significant stakes in their business.

Involvement: Board Position

Our view is that management is best qualified to run the company. However, our years of experience bring useful contacts and perspectives to companies we invest in. Our role is that of a strategic partner to management.

Security: Mainly Equity or Equity-Related but also Debt
As part of our objective to grow future Canadian technology leaders, we can invest in a broad range of securities including equity, equity-related and debt securities.

Path to Liquidity: Last or Second to Last Round Prior to a Liquidity Event
As a late-stage investor, we are typically looking to finance the last or second to last round of financing prior to an exit event such as an Initial Public Offering (IPO) or a trade sale.


Source: Tandem