Investment Criteria

Biafo Capital’s investment criteria is designed to capture potential synergies while minimizing transition risks

Industry and Geography

We are industry agnostic but are specially interested in industries with:

  • Low cyclicity

  • Moderate-high competitor fragmentation

  • Secular tailwinds

  • Have a preference for businesses with headquarters in Southern California, though we will consider all opportunities in the US irrespective of location.

Business Model

  • Enterprise, business or government customer base

  • Majority recurring revenue (>70%)

  • High retention rates (75%)

  • Low customer retention (<30% per customer)

  • Low CapEx

  • Aligned goals and culture with founders and employees

Financials

  • Revenues > $3M

  • EBITDA between $1M and $4M

  • Enterprise value between $3M and $15M

  • We might go above provided ranges for businesses that are exceptionally great fits

  • We are open to a range of deal structures