Targeted Industries
Chrysalis invests primarily in early-stage and expansion-stage companies in healthcare services and technology, media and communications, and business services. We will invest in other opportunities (e.g., roll-ups) but do not invest in life sciences. In general, we also do not invest in businesses which rely primarily upon patent protection or breakthrough technology as their source of competitive advantage. Chrysalis has a preference for overlooked, less crowded niches.

Midwest and South Regional Focus
Chrysalis prefers to invest in the “under-ventured” Midwest and South regions of the United States. We will occasionally invest outside of the Midwest or South when we can add particular value.

Strong, Experienced Management Teams
Chrysalis invests in companies that have both strong management teams and understandable business models that lead to defensible profitability. We believe that strong management teams are the key to building successful businesses.

Stage of Development
Chrysalis actively sources and nurtures promising early-stage and expansion-stage companies. We rarely invest at the seed-stage and prefer to invest in companies that are already generating revenue.

Investment Size
We typically invest at least $2 million in the first institutional private equity financing (the “A round”) in the form of a preferred security. We will invest in later rounds of promising companies, up to a total of approximately $15 million in a single portfolio company.

Active Investor Role
Chrysalis frequently acts as lead investor and activist partner in our portfolio companies. As lead investor, we have performed not only the traditional lead investor role of forming a syndicate, but have also actively helped management draft business plans, define strategy, plan tactics, consummate mergers and strategic partnerships, and attract key talent.