An Entrepreneur Explains 10 Things Needed To Build A Business That Investors Can’t Say ‘NO’ To – Forbes

by | Sep 16, 2022 | Business

Bruce Welty, Founder of the Unicorn Locus RoboticsWeltySupply chain management is hot. Investment is flowing into supply chain companies. In 2021, more than $25 billion was invested in supply chain companies in just the first three quarters of the year.

One successful private equity backed company is the unicorn Locus Robotics. Bruce Welty was one of the founders. Mr. Welty understands both private equity and supply chain management. He has the battle scars to prove it.

Fail Until You Win
Mr. Welty founded a company that sold warehouse management systems (WMS) called AllPoints Systems in 1987. Mr. Welty tried to accelerate the growth of this WMS company with outside investment. But, despite repeated efforts, he was never able to attract outside funding. He sold the company in 2001 when the company had achieved revenues of about $10 million. It was not a successful sale. The company buying his company, EXE Technologies, is now infamous among those who have followed the WMS market. EXE Technologies bought AllPoints with stock. EXE’s stock proceeded to tank; Mr. Welty was left with little to compensate him for 13 years of effort except for hard won experience.

He went onto become an executive-in-residence at Great Hill Partners in the early 2000s. At the time, Great Hill Partners managed 2 investment funds with over $300 million in equity capital (today Great Hill manages closer to $6 billion). Executives-in-residence are looking to join the executive team of the target company but also may be considered, in a sense, an insurance policy. If the private equity group feels the existing CEO is not working out, an executive in residence can be inserted into the company as the new CEO. Executives-in-residence are also industry experts that understand the nuances of an industry better than the equity firm’s financially-oriented partners and can thus help the partners better understand whether a potential deal should or should not be done.

Following this, Mr. Welty purchased a WMS company which became the platform upon which he created …

Article Attribution | Read More at Article Source

Share This