In response to the global pandemic that has caused so much uncertainty and disruption, a few weeks ago we sent an email to our network with a quick update on our progress, the general performance of our portfolio companies and our current situation with regards to new investments. We got a very positive reaction and as lockdown appears to ease up we are reflecting on the incredible work of the teams in our portfolio, as well as our investment strategy that led us to them.
While challenges remain for both the resilience of business models and the resolve of management teams, we at Frog are proud of the people and companies we have backed and their quick adjustment to the new realities. Without exception they have acted fast and continue to adapt to the changing circumstances as we move towards a more normal environment again.
Our investment horizon is significantly longer than any crisis has ever been. Therefore, with our recently launched second fund, we continue to look to back more exceptional entrepreneurs.
Furthermore, through our Scale-Up Methodology developed from years of experience and our in-house C-level operating partners, we support software companies comprehensively through the next phase of their growth.
We have already made our first investment in the new fund, in the Scottish health & safety software company SHE Software. Matthew Elson and his team had already grown the company into a leading position in the British market with over 250 customers and will use the new funds to expand internationally, with a particular focus on the US. In light of the current pandemic, SHE has also been quick to launch a new module to help customers protect their workforce from the virus.
We are looking to back more businesses like SHE:
- offering a process critical product
- already proven to solve a clear customer need – as evidenced by revenues in the millions
- looking for €5 – 20m of equity funding to scale further
These funds are typically used to invest in product extensions, geographical expansion and / or growing the sales team to name just a few of the typical growth projects we have encountered many times before.
As most European economies are gradually settling into a new normality, resilient software businesses will look to set themselves up to take advantage of the recovery and resume the growth path.
About the author
Jens joined Frog in 2012 and became a Partner in 2016. Active across all Frog’s investment themes, he has a particular focus on investment opportunities in German-speaking Europe and BeNeLux.