F&F Season 4 Episode 2 – Marc Young of ADG Pref Cap

We talk today to Marc Young, a skilled artisan in the world of finance, who de-mystifies the arena of debt, an area that most founders look upon with fear, but at ADG Pref Cap, they have a perfectly sensible product and fund, specifically focused on B2B Software start-ups.

ADG itself is a diversified Asset Management company, which offers a lovely umbrella to the fund, business and regulation.  ADG are looking for:
# Founders that have identified a niche / area that they can make a difference and attract customers
# Businesses that are effectively scale-ups, with a healthy MRR, moving towards £100k in the next 12 months
# Founders that need some smart, growth funding to bridge the gap or provide breathing space till their business is ready for Series A funding
# Founders that have businesses that are about to scale, rather than scaled!
# Investing internationally over zoom, with a Dutch business recently taking investment from them, who they’d never met Face To Face

Marc also sheds light on these areas in this 33 minute call:
# Post pandemic there are more relevant businesses around for them, partly due to better search mechanisms being put in place at Pref Cap, but also the market itself
# They avoid B2B Fintechs, that fundamentally need a consumer aspect to their scale
# A whole new generation of verticals are growing, like Rev Tech which is a very interesting growing category, focused on providing CRM tools, to fast growing SaaS scale-ups
# People or Scouting appears to better for them, rather than using data tools to spot the talent
# US Software companies are increasingly buying UK built Software businesses..giving angels EIS returns, within 5 years, rather than 10!

Good fund – helping fill a growing niche in Europe for founders..