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Invest in New Majority Capital

Close the gap by creating more diverse BIPOC/ Women Business Owners

Highlights

1
🏆World-class team with 300+ business acquisitions valued at over $1 billion
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🚀$40 billion revenue potential; $2 trillion+ acquisition market (not guaranteed)
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⛰️12 million+ small businesses will seek retirement in the next 20 years creating a huge opportunity
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😇 We provide financing, education, and support to help create more BIPOC, women, & small business owners
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🎯Serviceable obtainable market of around 2 million small businesses in the US
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🌟Set to be the Y Combinator for entrepreneurship through acquisition (not guaranteed)

Our Team


A Dozen Reasons to Invest in New Majority Capital (NMC)

New Majority Capital is closing the racial and gender wealth gap by creating more under-represented small business owners who are Black, Indigenous, and People of Color (BIPOC), and/or women, LGBTQ, Immigrants etc.

We do this by providing knowledge and capital to founders, as well as by connecting them to the right businesses.

Here are the top 12 reasons why you should invest your hard-earned money in NMC:

We are currently seeing two HUGE trends in our favor: the baby-boomer-driven Silver Tsunami and the Great Resignation.

Born between 1946 and 1964, baby boomers are the second largest population of small business owners in the United States, making up 41%.

In fact, within the next two decades, more than 12 million small business owners will seek retirement. This represents $10 trillion in assets.

Now, as these small business owners reach retirement age, they naturally want to sell their businesses.

They require management succession and ownership transition. However, only 1 in 5 listed businesses are acquired and the rest are shut down, leaving employees out of a job and rendering that cash flow-generating business asset worthless.

Meanwhile, more working people want to quit their current jobs, be their boss, and do something meaningful with their lives.

New Majority Capital pairs the two to ensure the survival of small businesses in the United States and the development of new BIPOC/women owners.

To truly understand New Majority Capital, think of us like the Y Combinator for entrepreneurship through acquisition.

We train and then help entrepreneurs match with the right business for them, and provide both funding and post-acquisition support to help them get off the ground and stay in flight in the important early stages of their new acquisition.

Instead of having to start a business from scratch, aspiring business owners instead buy and grow an established small business.

For entrepreneurs at all stages of their business life, ETA can be less risky than starting a brand-new business, especially since the startup product or service is unproven in the market, compared to an established business.

Traditional search fund investors do exist who provide financing for entrepreneurs to acquire and run businesses. In contrast to New Majority Capital, these investors are typically focused on, taking a higher percentage of ownership typically with a prescribed plan to exit, and prefer to back MBAs (typically from Ivy league schools) and/or established executives. For this reason, this path is not easily available to the general population.

These traditional funds focus on high growth areas and professionally managed companies with EBITDA generally over $2 million.

At New Majority Capital, we are focused on lower, but still healthy EBITDA of $400,000 to $2 million, with stable businesses that are usually run by owners who do not have an MBA or corporate business experience. While our entrepreneurs have the opportunity to achieve rapid and significant growth, a steady continuation of profitability is enough, so our entrepreneurs are not pressured into pushing for high growth.

The result is breathing space for entrepreneurs, which allows them to grow their business with a long-term mindset and truly stamp their mark.

There are many financing options available for acquiring a business, but for a significant number of aspiring new business owners, getting access to this capital is a major hurdle.

Many ambitious entrepreneurs never seize their opportunity due to limited access to savings or having to rely on money from friends and family to get started. Meanwhile, SBA 7(a) loans currently provide around 85-90% of the financing, but these require personal guarantees and come with many restrictions.

We help fill the capital gap for business asset ownership by ensuring the entrepreneur needs to pay nothing to start. Our digitized underwriting engine offers terms, similar to SBA 7(a), but with less restrictions.

View us as an alternative to the SBA loan program.

There is no need for personal guarantees, and sellers can be incentivized to stay longer if needed. We can act fast so that sellers and brokers prefer to engage with us.
 

New Majority Capital fills a gap that is not met by anyone else on the market.

📋 1 – Effective Education and Training

We create awareness of entrepreneurship through acquisition (ETA) for budding business owners who are not from Ivy League MBA programs, which is currently where the majority of ETA ownership comes from. 

Additionally, we use algorithms to match qualified entrepreneurs to the right businesses for sale and then work with them through the acquisition process from due diligence to contract negotiations and closing. In coordination with our established non-profit and university partners, we are creating “Succession Ready” education programs for existing small business owners to increase the number of eligible small businesses coming up for sale to ensure fair value and a smooth transition for retiring business owners.

Finally, we offer key training in everything from people management to financial management to give our businesses and their workforce the best possible start.

😃 2 – High-Quality Support Services

We deliver technical pre-and post-acquisition business support to new business owners. This includes vital transition management, as well ongoing back-office support for first-time owners, such as accounting, IT services, HR services, digital marketing, and continuous training.

🧑‍🏫 3 - Mentors

Additionally, we pair entrepreneurs with experienced mentors who are there to advise and support the business through growth and eventual exit.

The wealth gap in the United States is growing – and we are out to help close it once and for all.

We are talking about the wealth gap between men and women, and BIPOC and White Americans.

Owning a profitable, cash-flowing small business is a solid way that many generations of Americans have used to build assets and create long-term inter-generational wealth. Until now, this opportunity has been largely out of reach for the majority of underrepresented entrepreneurs.

Currently, a staggering 84% of businesses in the country are white-owned and 62% are men-owned, according to figures from the US Census Bureau.

At New Majority Capital we are working to educate more BIPOC and women entrepreneurs about ETA as a viable path to wealth creation, while we are also creating access to economic mobility opportunities for all underserved communities.
The aspiring new business owners that we work with come from all walks of life, including recent MBA graduates, experienced mid-career switchers, and workers with hands-on experience who have worked their way up in the trades.

To strengthen our reach and effect, we are working on developing partnerships with associations such as the National Black MBA network, the Hispanic MBA network, non-Ivy League colleges, and HBCUs (Historically Black Colleges and Universities) to build a strong pipeline of new BIPOC or women small business owners.

The market opportunity is massive. In the United States, more than 10 million small businesses will be on sale over the next 20 years due to the trends outlined above.

Our target market is around 2 million of these small businesses, which have 2 to 20 employees and generate revenues of more than $1 million.

This means that with 2 million businesses valued at around $1 million each, there are $2 TRILLION in financing opportunities. In terms of our business model, assuming a 2% fee and ignoring performance fees and services revenue, the total revenue potential is $40 billion.

Investors benefit from all of NMC’s value generative activities - from initially earning origination fees from third-party funds to earning management and performance fees as GP for our impact funds to back-office support services to portfolio companies. 

As a preferred investor, you receive a preferred return first in our waterfall model, before you continue to share in the upside with common investors.

    We are proud to be able to boast a passionate and experienced leadership team and active advisory board, with a combined experience of more than 300 business acquisitions, valued at over $1 billion.

    Both our founders are entrepreneurs with strong financial backgrounds that have experience in building successful businesses and small business acquisitions. Both Kris and Havell have clear personal reasons to drive impact in this industry.

    We are also thrilled to have such a strong and astute advisory board and partners.

    Here’s where we currently are:

    • We have secured grant funding from the RI Commerce department to develop a training program and platform to teach business owners about succession planning while preparing them to sell their businesses.
    • We have built a solid pipeline of entrepreneurs, businesses, mentors, and other funding partners.
    • We have developed partnerships with funders to provide debt funding without personal guarantees, and are working on structures to mitigate risk through first loss policies.

    Now we are here on Wefunder, ready for the next step – and YOU can take that step with us.

    Our long-term goal is to train 10,000 BIPOC and/or women in entrepreneurship through acquisition while nurturing a perpetual fund that outlasts us and continues to grow its impact.

    Through equity crowdfunding, we are excited to build a community that can strengthen and increase the number of BIPOC and women entrepreneurs by levelling the playing field.

    The funds we raise in this round will go towards building our management team, marketing, due diligence support, portfolio company operations, and developing technology.

    By joining our community of stakeholders, you can make a personal impact by referring entrepreneurs, businesses for sale, and mentors. This will expand our reach and our ability to help those who need it.

    There is also potential to earn referral fees when we back referred entrepreneurs or help acquire referred businesses, while potentially participating in an innovative evergreen fund using an original DAO structure. These schemes are currently in development.

    It is rare that such an exciting investment opportunity comes along – especially one with such a strong social cause.

    Invest today and together we will make a real lasting impact. We look forward to welcoming you onboard.

    Overview