Partnership + Capital. There are three significant differences between Partner Capital and Venture Capital.
We Are Long Term Investors
Venture Capital is founded on a model where the investors purchase shares in a venture. They then drive that enterprise to a liquidity event so the shares can be sold or distributed. Venture funds are closed-end funds with, typically, a 10 year life. They are required to return capital to their investors within that 10 year window. As discussed elsewhere on this site, this drive to liquidity creates cultures and behaviors that are destructive to the long term interests of the other stakeholders of the enterprise.
Partner Capital is a long term investment. The SwitchCase Group is an open-ended investor. We are interested in businesses which grow revenue and generate strong free cash flow. We want to hold onto that investment indefinitely. We are owners, not traders. We are more like a mini-Berkshire Hathaway than like a mini-Kleiner Perkins.
We Build Deep and Broad Partnerships
SwitchCase Group is building a family of enterprises not a portfolio of shares. Our principals are engineers, marketing executives and experienced business leaders. We roll up our sleeves and go to work with you and for you. If you need development support to build your product, our engineering team will provide it. If you need help building your business strategy, our business executives will attack it with you. If you need to land your anchor accounts, our marketing executives will link arms with you and take your product to market. Our support reduces your need for capital, shortens your time to market and creates a lean and flexible staffing model for your enterprise.
We Nurture a Shared Vision
The SwitchCase vision is not new. It is a rediscovery of an old model; a model where entrepreneurs and their partners built enduring institutions instead of buying low and selling high; a model where the objective is to dominate important markets rather than simply to get rich. We want to make a difference.