Diamond State Ventures invests in companies with operations located in Arkansas and throughout the Midwest and Southeast regions of the U.S. Our goal is to back management teams pursuing extraordinary opportunities that meet our investment criteria.
Our investments are typically structured as subordinated debt with warrants, preferred equity, or a combination of those securities allowing the flexibility to optimize a company's capital structure while minimizing shareholder dilution. We can serve as a lead investor or co-investor with other private equity funds, strategic corporations or angel investors in transactions totaling up to $25 million.
Key Investment Criteria
- Experienced and committed management teams with an exciting or unique market opportunity, offering excellent growth potential
- Target industries include niche manufacturing, business services, media, consumer products and services, education, healthcare services and technologies
- Investment size from $1 million to $6 million - can be staged
- Syndicate junior capital raises up to $25 million with our strong network of co-investors
- Minimum annual revenue of $2,000,000 with high revenue growth
- Minimum annual revenue of $5,000,000 with moderate revenue growth
- Change of control transactions, including management and leveraged buyouts, recapitalizations and expansion/growth financings in more mature, stabilized companies
- No seed or start-up companies