Portfolio

VENTURE PORTFOLIO

From 2018 to 2021, GSC’s founders managed five venture capital investments in companies that wanted to include an employee ownership floor to their capital stack in order to secure and retain talent. Our goal was to create a venture portfolio that drives increased alpha and DEI.

Venture Strategy and Screening Criteria

Millennial and Gen Z consumers want to support business with ethical practices for the planet and people when purchasing goods and services. Our venture investment screening criteria included:

1. agreement from owner/operators to a 20% ownership floor for rank-and-file workers
2. businesses that derive their profit margins from low-wage or gig labor, and 
3. enterprises in growing consumer markets for Millennial and Gen Z consumers

Investing in Growing Markets for Millennial and Gen Z Consumers

1. Ethical and Sustainable Farm Labor Services

Originated the largest farm labor cooperative in the largest agricultural county in the United States

2. Eco- and Agri-Tourism

Invested in a travel tech company that creates tours with Hollywood writers to bring consumers to locally-famous businesses and eco- and agri-tourism attractions while integrating diverse narratives

3. Experiential Hospitality

Invested in a private event space and catering group as a deal flow engine for Good Scout Capital’s growth equity fund

4. Community Spaces

Invested in a proptech company creating a multi-sided marketplace for faith-based real estate 

Diversity, Equity, and Inclusion

GSC believes that by using a DEI lens, we can lift up operators who have historically had a difficult time raising capital. Examples of entrepreneurs we’ve backed: 

• Black, Asian-American, Latino, and White Women and Men 
• LGBTQ
• Military Veterans
• Immigrants
• Low-income background

GROWTH EQUITY PORTFOLIO

GSC’s growth equity fund, Scout Fund Alpha, is seeking post-revenue companies that are looking for a values-aligned capital partner to add an inclusive capitalism component to fuel their growth by incentivizing their workforces to increase their productivity and rewarding them appropriately. Below are ten initial screening criteria and the target investment sectors for Scout Fund Alpha. If this fits your company, then please get in touch with us via our form.

1. Target a blended Portfolio IRR of 26%+
2. Controlling interest to GSC with investments as low as $3MM
3. Low capital intensity businesses with annual EBITDA under $8MM
4. Variable cost businesses that derive their margins from labor
5. Experienced management teams with at least 50% underrepresented
6. Underrepresented workers make up at least 50% of the workforce
7. Workforce is paid an hourly wage, tips, and/or gig payment
8. Potential for national scalability with large corporations
9. Competitive advantage of the service or product
10. Pandemic battle-tested essential businesses and entrepreneurs