Jonathan Simkins

I have always believed that private companies are best financed by a range of investment sources with complementary risk profiles. The addition of Bob to our Advisory Board is a critical step that reflects our thinking.

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Flourish Ventures team is excited to back the indomitable Chris Brummer as he builds Bluprynt to transform the infrastructure for disclosures. We feel privileged to be part of an amazing group of industry leaders and backers working with Chris. Arguably, we are living through a pivotal moment for disclosures and trust and transparency in finance. The concept of financial disclosure became prominent with the Securities Acts of 1933 and 1934, following the 1929 market crash. Digitization began in the 1990s with EDGAR and XBRL in the early 2000s. Today, we face a new phase in disclosures with the integration of digital assets into the financial system. This evolution reflects market changes and regulatory responses, presenting an opportunity to transform the technological underpinnings of disclosure systems fundamentally. #fintech #digitalassets #crypto #disclosures https://lnkd.in/eme7fgDE

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PE insights - from the latest episode of "Behind the Deal" with Orlando Bravo & Carl Thoma at Thoma Bravo. Great lessons from Orlando Bravo who discusses losing money and making many mistakes early in his career, Carl Thoma (Orlando's mentor): On People: - "PE is a people business." - "Deal-making is such a people business. It's not like you can sell the stock if you don't like it, you're stuck with your partners. " (Good point - unlike public equities investors, you are in it for the long-term, with your team, partners, and your portfolio companies - it's a people business). ------ On Making Mistakes: - “Mistakes are meant to be stepping stones to success - not stepping stones to ultimate failure.” - "People learn from their mistakes." - "Mistakes early on make great investors but you have to make sure you don't make so many mistakes that you lose confidence... and just don't make the same mistakes again". - "When you make mistakes, you have to capitalize on that." ------ On losing money (Orlando asked whether Carl was going to fire him): - "I've sunk $50 million of experience into you, so you are a star now and you've got a lot of good, expensive training." - "I'm not sure you could have been as successful without stumbling a little bit early on." - "You had pride in your work and drive that it didn't put you in a stumper and didn't leave the industry. I think 1 + 1 = 10, drive and some failures are good experience." ------ On Teamwork: - "Just like in sports, today you just cannot have individual players that are brilliant but not working as a team. We got away with that for 25-30 years of private equity, but now it's become too competitive. We've got to function as a team." ------ On communication: - "You can resolve so many issues if you just communicate." ------ Sources: https://lnkd.in/eVk_Wxwq https://lnkd.in/eem_DquZ ------ #pe #privateequity #business #leadership

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PE - example of a simple investment criteria (i.e. from TNYZF, which aims to be the next BRK.A or CNSWF) Tiny (Andrew Wilkinson, CEO) specializes in buyouts, majority, and minority investments with a focus on investing in tech. When acquiring businesses - this investment firm looks for the following (source - Tiny Ltd.'s financial statements/investor letter): - Simple business model - Healthy profits - Consistent track record of profitability - Happy employees & customers - Unique advantage - Long-term record & good reputation - Fair price --------- #pe #privateequity #business #technology #saas

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I recently had the pleasure of speaking with and learning from several software execs from our portfolio companies and industry experts during Thoma Bravo's AI Summit in Miami. It was great to share our insights into trends and practices we see in our portfolio and how we manage opportunities and risks. At TB, we have a long history of guiding enterprise software companies through digital transformation, and we’re already navigating the transition driven by generative AI. Our focus is on managing this new innovation by absorbing the technology to bring meaningful benefits to our portfolio companies and indirectly to their customers. And it’s evolving fast! We see our portfolio companies today using gen AI in generally three ways: first, to create new products and provide customers with incremental use cases. Second, to defend against cyber attacks that have become much more sophisticated by bad actors. And third, as an enabler of talent to make business operations run more efficient and productive. In our view, AI presents a significant growth opportunity, but we also believe that to really maximize that potential, companies should carefully evaluate the risks and be thoughtful about governance, trust, security and data privacy. AI is poised to accelerate innovation and it’s hard to predict the full, transformative potential of AI, but we are confident that some of the advantages of incumbent knowledge and data will be key to unlocking its value.

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NEW YORK, April 30, 2024 /PRNewswire/ -- PRISM Consulting Partners, a Florida based healthcare private practice acquisition advisory and consulting company, and Lion Management Services Organization of New York, have partnered to form PRISM Concierge. PRISM Consulting Partners was formed in 2023 by founders Michael Guelcher, David Molle, and Brian Whitman. The three partners have over 60 years combined experience in acquisitions, transitioning practices, and healthcare business development. Lion Management was founded in 2021 by James Vena, a Wall Street veteran with 35 years of value creation and capital investment experience. Lion Management implements and manages strategic solutions for private healthcare practices. The newly formed PRISM Concierge aims to be a full-service provider to private healthcare practitioners looking for options ranging from maximizing profit to ultimately transitioning to their desired outcome. The client receives management of back-office services tailored to achieve that outcome. "PRISM Concierge offers the mechanisms and resources to achieve a higher level of freedom," states Michael Guelcher, PRISM Partner. "Change readiness encompasses discipline now, for more freedom and greater rewards later." David Molle goes on to state, "We're filling a void in the healthcare market by bringing together shared resources and services that will ultimately improve a practice's bottom line, while freeing up time to allow for better patient care. Essentially, we're doing the things Drs. don't get paid to do. From shared billing and credentialling, to consultants, attorneys, IT, HR, and a complete group purchasing organization to name a few, your "concierge" can help with most aspects of your business as a single point of contact." James Vena, CEO, Lion Management is enthused about the impact PRISM Concierge can have in the marketplace. "Our recent success of organizing a group of 20 practices in a short window and making them the 35th largest eyecare practice in just two years translates well. We are embarking on something that has never been done before, and there is considerable demand for these services." About PRISM Consulting: https://lnkd.in/ed3gHdVd About Lion Management Services https://lnkd.in/ei-cpseE https://lnkd.in/ei-cpseE #eyecare #privateequity #healthcare #eyewear #optometrist #exits #mso #managementservices

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https://lnkd.in/e-Cc-PhA Just wrapped up a case study highlighting some successful value creation work for a vertical software company. After a funding event, it can be tough for management teams to align on which initiatives to tackle first. Here are a few tips from my experience: 📈 Prioritize Compounding Benefits Start with initiatives that enable or build capabilities. These early projects are not the most glamorous. The long term value is the momentum they create and tone they set. They pave the way for bigger wins down the line. 🚧 Address Bottlenecks We identified and fixed a major technical bottleneck in the sales funnel. This gave us an immediate boost to revenue and win rates. The less obvious win was a finding that our marketing efforts were more effective than we thought. Many opportunities fitting the ideal customer profiles were getting stuck at the bottleneck! ✴ Find the Triple Word Score Initiatives Focus on initiatives that add value across multiple valuation categories like revenue, margins, and multiple expansion. My favorites are those that improve operating leverage and scalable unit economics. Operating leverage improves as each dollar of increased revenue earns a little more Operating Margin (EBITDA) over time. In the case study, I renegotiated two of the largest variable cost supplier contracts, leading to immediate improvements in unit contribution margins and setting the stage for increasing margins as revenue grew. This is a valuable function of a durable business model. Most teams agree on what needs to be done, but not always on the order. Choose initiatives that start building a solid foundation for future investments or the Quick Wins with high impact. A few good articles that touch on the technical concepts.. Healthtech: Show Your Magic | Andreessen Horowitz  https://lnkd.in/eGkDnkiG The Gross Margin Problem - Bottom Up by David Sacks https://lnkd.in/e9J2Eqaa

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May is when many private companies finalize mid-year comp plans 💵 Need a reliable 409A valuation? Or has it been over a year since your last? We've got you covered! Scalar's 409A valuations keep you compliant, protect employees from tax penalties, and come with a team that supports you all the way through an audit. https://lnkd.in/gs_CtPNS

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Join us tomorrow for a panel discussion on the complex relationship many FirstGens have to money and how that affects founders, investors, operators and others. See you tomorrow! https://lu.ma/9rixyzgs

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Check us out on Substack! If you like what you see, please subscribe. More to follow!

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A few Friday thoughts... After several days in Chicago surrounded by 200+ LPs at the ILPA Members' Conference covering everything from AI to NAV facilities, I'm headed into the weekend energized by what's to come. That may come at a surprise after the week we've had as an industry. The decision from the U.S. Fifth Circuit on the SEC's Private Fund Advisers rules was handed down just moments before we kicked off ILPA’s AGM on Wednesday. All along, ILPA has viewed the PFA as addressing areas that pose risks to both LPs and the industry around transparency, governance and alignment of interest. It was disappointing—albeit not a shock—to see the PFA vacated. But ILPA is choosing to turn our energy to the compelling opportunity before us as an industry. Together, we can chart the path for how we'll work better together, on our own terms. Particularly around transparency. Just days prior to the ruling, we had debuted the next evolution of ILPA reporting templates on fees and expenses and performance for industry feedback. The templates were developed by a broad industry coalition over a three-month period, partly to comply with the PFA quarterly statements rule implementation deadline, but largely because this work needed to be done. We've temporarily paused the comment period. Now we have the benefit of more time to ensure that these minimum reporting standards have cross-industry buy-in to ensure wide support and adoption. Will you join us in this effort, in paving the way forward as an industry? https://lnkd.in/e-6hspU4

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Now available on-demand! “Charting the Course: A CFO's Guide to Modern Fund Management in 2024” Hear from Joe Harrington, Partner at PwC US, Dana Van Wie, Partner at PwC US, and Adam Walker, Industry Principal of Fund Solutions at Juniper Square, discuss: ▶ How the role of the CFO and skills required of finance leaders are changing ▶ How technology and innovation are transforming fund operations ▶ The importance of investing and building people-first, data-organized systems  ▶ Assessing and mitigating risks, including cybersecurity threats, operational errors, and human error Link to the recording in the comments.

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According to government estimates, the U.S. Manufacturing sector loses well over $100B annually because so many companies remain over-dependent on outdated manual processes. For such companies, creating a more “eCommerce-like” buying experience for their suppliers is imperative.    That’s why today Cleo launched CIC ORCA (Order to Cash Automation), a new capability in our Cleo Integration Cloud platform that dramatically improves #B2B buying experiences by delivering seamless “eCommerce to EDI” workflows for businesses that don’t happen to have EDI capabilities.    CIC ORCA is intended for #manufacturers, #wholesalers, and #distributors who must cater to the modern B2B buyer’s preferences for ease-of-use, self-service, and efficiency when procuring goods, getting delivery updates, and receiving invoices from their suppliers.     In an era shaped by the “Amazon Effect,” suppliers are increasingly expected to emulate the B2C buying experience. Cleo's CIC ORCA gets everyone singing from the same song sheet. For the full story see today's Cleo Press Release or visit the CIC ORCA web page -- https://lnkd.in/gqFn4hCj

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Executive Edge | Issue Two: Suite Success. Should a case study approach be used to successfully hire C-level talent? ------- If you're a #cfo currently working in private equity, venture capital (or other investor types), or, you're a business seeking to hire transformational finance talent Camino Search specialises in head-hunting & consulting for investor-backed tech businesses. Globally. #fd #saas #pe #privateequity

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🚨 Attention startup founders! 🚨 Before you start pitching to VCs, take a hard look at your business. Is it truly venture-backable? 🤔💡 I've worked with hundreds of startups that have collectively raised billions in funding, and I can tell you that not every business is a fit for VC. Check out the full podcast for more insights from David Forsberg, CFA and our VP of Financial Strategy, Healy Jones. Link in the original Kruze Consulting post. 🎧 #startups #venturecapital #funding #entrepreneurship

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I so enjoyed this conversation with Jeffrey Tockman! He provides profound, yet actionable insights for businesses looking to grow through referrals. #TheFutureofPrivateEquity #businesspodcast

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This document is very important for sellers in a transaction - find out why in our latest blog:

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📉🚀 Thrilled to share our findings from the 2024 Startup CEO Salary Report featured in Fast Company! 📉🚀 Dive into the dynamics of CEO compensation across various funding stages and see why strategic financial management is crucial. Link to the article in the original post by Kruze Consulting. #Startups #Compensation

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