Arrowroot Capital Management is a global growth equity firm based in Santa Monica, CA focused on minority, majority, and buyout investments in B2B software companies. The firm serves as a catalyst for growth-related initiatives by partnering with management and leveraging its deep enterprise software expertise to deliver meaningful, tangible value. Arrowroot targets initial equity investments in the range of $5 million to $25 million, and has the flexibility to pursue larger opportunities as well as a broad range of transaction types. Arrowroot also targets add-on acquisitions for its portfolio companies with a wider range of size and general criteria.
Our investments are typically deployed to achieve distinct working capital needs ranging from sales & marketing acceleration, creation and expansion of customer success team, product development acceleration, geographic expansion, & add-on acquisitions.
Arrowroot targets mission-critical B2B software companies with the following characteristics:
Mature recurring revenue business models
Positioned for accelerated recurring revenue growth
Proven product-market fit, demonstrated by strong customer retention
High renewal rates, typically above 90%
Experienced and motivated management team
Commonly solves a pain-point in workflow, compliance, optimization, infrastructure, and/or security
Strategic Resources Group
Arrowroot’s in-house Strategic Resources Group (SRG) is designed to serve as an extension to our management teams and supplement their domain knowledge, optimizing initiatives across Sales & Marketing, Human Capital, Technology & Operations, Customer Success, M&A, and Business Development.