Chrysalis invests primarily in Healthcare and Technology companies. We invest in transformative businesses, not intellectual property or science experiments. We focus on regional businesses that will have a national impact and typically invest early, committing our operational and industry expertise to help build enduring businesses. We have a preference for businesses in overlooked, less crowded niches.
Chrysalis currently has investments in 20 states across the United States, but we prefer to invest in the “under-ventured” Midwest and South regions of the country. We occasionally invest outside of our target region when we find businesses with strong potential where 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, and occasionally invests in other select opportunities (e.g., roll-ups). We rarely invest at the seed-stage and prefer to invest in companies that are already generating revenue in the $1 to $5 million range.
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 perform not only the traditional lead investor role of forming a syndicate, but also help management draft business plans, define strategy, plan tactics, consummate mergers and strategic partnerships, and attract key talent. In co-investment situations, Chrysalis is an engaged collaborator with other investors and management teams, as appropriate.
Does your business fit these criteria? Submit your business plan.