Billion-dollar Charlotte investor eyes Phoenix for tech investments

Angela Gonzales  Phoenix Business Journal  Feb 2, 2016, 10:14pm MST

Frontier Capital LLC, a Charlotte, North Carolina-based growth equity investor with nearly $1 billion in assets under management, has its eye on the Phoenix market.

The company invests in the software industry, making its debut last year with a $30 million investment in Scottsdale-based HY Holdings Inc., which operates the HealthiestYou Web-based and mobile technology applications.

Seth Harward, principal of Frontier Capital, said the company focuses on markets that aren’t getting funding.

Phoenix definitely fits that criteria, which is why Harward said he’s talking to other tech software firms here to look at potential investments in the Phoenix area.

He said he’s looking at growth-stage companies that have annual revenue ranging from $5 million to $30 million and need a bit of a financial boost to get to the next level.

“There’s a lot of promising technology companies there and not a lot of capital to fund them,” he said.

Frontier Capital is a growth equity, later-stage investor, which is different from venture capital, which is an early stage investor.

“We are committed to the Phoenix market and look forward to identifying additional investment opportunities and being more involved in the ecosystem,” Harward said.

He said the company usually invests $10 million to $45 million in a company, depending on the company’s needs.

“It’s really about finding the right investment for that company at the end of the day,” he said. “If they only need $15 million, then we’ll do $15 million.”

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