Cavalry investments is an investment firm that specializes in providing financing and strategic support to high-growth technology companies. With its headquarters in San Francisco, cavalry investments focuses its investments primarily in the fintech, enterprise software, digital health, and consumer internet sectors. The firm was founded in 2015 and is led by CEO Pat Grady. Since its founding, cavalry investments has invested in over 60 companies across multiple funds, deploying over $500 million in capital. Some of the firm’s more notable investments include companies like Stripe, Brex, Gusto, and Tipalti.
In this article, we will take a closer look at cavalry investments’ business model, investment strategies, portfolio companies, and overall impact on the tech startup ecosystem.
Cavalry investments’ sector-focused investment approach
Unlike many investment firms that take a broad approach to investing, cavalry investments hones in on a few key high-growth technology sectors. As mentioned earlier, the firm focuses on fintech, enterprise software, digital health, and consumer internet. Within these sectors, cavalry investments seeks to invest in startups and founders that are pioneering new technology or business models. The firm also looks to add strategic value alongside its capital, often getting involved at the board level. This sector-focused approach allows cavalry investments to leverage its partners’ expertise in specific technology domains and build network effects.
Flexible check sizes and stage-agnostic investments
In addition to its sector-focused approach, cavalry investments is flexible in the size of its initial and follow-on investments. The firm invests anywhere from $500k to upwards of $50 million in companies, adjusting its check size to the specific capital needs of each company. Cavalry investments is also stage-agnostic, meaning it will invest in seed to late-stage private companies, as long as there is product-market fit and strong growth metrics. This flexible approach allows cavalry investments to act as a partner to its portfolio companies throughout their lifecycle, leading and participating in multiple funding rounds.
Focus on adding value beyond capital
A key aspect of cavalry investments’ strategy is providing hands-on support and expertise to founders, beyond just capital. The firm’s partners have extensive experience both founding and operating high-growth startups across technology sectors. They leverage this expertise to help founders with strategic planning, recruiting, business development, and other aspects of company building. Cavalry investments also facilitates connections between its portfolio companies to help them learn from each other. This value-add approach strengthens cavalry investments’ partnerships with founders and differentiates the firm from pure financial investors.
Notable portfolio companies and exits
Since its launch in 2015, cavalry investments has assembled an impressive portfolio of over 60 private technology companies. Some of the firm’s recent portfolio additions include heart health startup Heartbeat Health, cybersecurity firm Resecurity, and data platform Census. Notable portfolio companies also include fintech leaders like Brex, Gusto, Stripe, and Tipalti. On the exit front, cavalry investments has achieved exits from portfolio companies including Opendoor and Niantic, which had successful IPOs. Scout RFP, Quantifind, and E la Carte are some of the other portfolio companies acquired. With these exits and a strong portfolio, cavalry investments demonstrates its ability to successfully identify and invest in fast-growing tech startups.
In summary, cavalry investments leverages sector expertise, flexible capital, and value-add support to partner with exceptional founders building technology companies. Through its investments and involvement across all business stages, cavalry investments accelerates growth and value creation for its portfolio. The firm has emerged as a leading technology investor, with a portfolio of 60+ companies and a strong track record of exits. Going forward, cavalry investments is well-positioned to continue identifying and backing cutting-edge startups across its core sectors.