Chad Summe, partner at eGateway Capital, details how the firm assists portfolio companies with M&A and inorganic growth.
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“One of our partners is a longtime investment banker in this space, and we have a boutique M&A shop that's under the eGateway banner, and if we can help with non-organic growth, we're really excited to do so.”
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More from Chad Summe
Insight
Summe: Capital in growth equity is commoditized compared to operator expertise
“In the words growth capital, too much emphasis has been put on capital. It's become somewhat of a commodity. Our interest on the other hand was to focus on the word growth. We thought there was a lack of operator expertise and true knowledge around growth”
Chad SummeJan 25, 2024▶ 13:06Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364)
AssertionNot checkable as stated
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“Take a company like 80 Acres. It's a vertical farm that is doing something that has never been done in the history of mankind. Producing food indoors, at scale, and actually making money.”
Chad SummeJan 25, 2024▶ 39:27Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364)
Opinion
Summe: The US Midwest presents an undercapitalized investment arbitrage opportunity
“We think the Midwest is undercapitalized. We believe in that. We think there's an arbitrage opportunity as a lot of US industry sits here with not a lot of the capital.”
Chad SummeJan 25, 2024▶ 20:35Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364)
AssertionSupported
Summe: Liquidation preferences have returned to growth-stage deal structures
“We've seen structure return in the marketplace in the form of liquidation preferences.”
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Insight
Summe: Midwest startup advantage is customer proximity, not cost savings
“And I think it's way beyond cost benefits of not being on the coast. It's really more around being closer to your customer. So much of us industry sits right here in the middle of the country. And when you're a startup moving to growth stage on the coast, some…”
Chad SummeJan 25, 2024▶ 36:30Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364)
AssertionNot checkable as stated
Summe: Five players control 80% of total media spend
“Five players control 80% of media spend. We believe that has to revert back to the mean.”
Chad SummeJan 25, 2024▶ 45:35Chad Summe and Mike Veith – Corridor of Commerce at eGateway Capital (EP.364)
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