Arrowroot Capital Management

Arrowroot Capital Management is a growth equity firm based in Santa Monica focused on growing and mature, recurring revenue software businesses. We seek to partner with management to accelerate growth and help guide the company to its ultimate exit.

Arrowroot's capital is typically deployed to achieve very distinct goals including, but not limited to:

– Working capital and growth investment
– Liquidity for founders and/or management
– Liquidity for previous venture or angel investors
– Acquisition capital

Arrowroot’s capital is flexible, but investment characteristics generally include:

– Minority or majority positions
– Board representation
– 2 to 5 year hold periods
– Highly incentivized management teams; commonly via new option grants
– Arrowroot seeks to optimize the investment amount in order to efficiently grow businesses and create healthy capital risk dynamics for founders, current management, and past investors

Target Company Characteristics:

– $5 million+ revenue run-rate
– Strong recurring revenue growth rate
– Proven, effective and efficient sales and marketing strategy
– Mission-critical, B2B software that typically solves a pain-point in compliance, workflow, security, and/or optimization