About Stuck Fund 1
We, the co-founders and primary investors of STUCK Fund 1, have joined with our family and friends to help businesses grow. Using our expertise and proven track record of starting up and growing a successful international organization, we see investments as more than a simple return. We are passionate about people, culture, and process development and will support you and your team in a spirit and culture of growth.
In the midst of our entrepreneurial journeys, we have developed tools and systems to help other small businesses grow and our desire and passion is to offer those services to our own investment companies.
Our process, tools, and systems are being utilized with our current companies and we work hands-on and use the STUCK Breakthrough Strategies Platform for the assessment, creation, deployment, and execution of a Single-Page Plan. The use of our hands-on tools and strategies within our companies is what makes our investment strategy unique.
The benefits of working with STUCK Fund 1 include:
- Utilization of STUCK Breakthrough Strategies tools to help with growth, strategy, and execution
- A long term hold strategy
- No predetermined exit horizon
- Partner with key leaders on their journey towards growth
- Offer ownership interest in our fund
Our Strategic Investment Process
Businesses that fit our investment criteria will start the process by simply contacting us. As we have personal experience with both selling our business and buying others, we know how important it is to keep our process expedited, confidential, and efficient for as we know how the topic of investment can be a distraction and bring along feelings of uncertainty for employees.
To start the process, we will first learn about the business during the investment assessment process which includes initial discussions, reviewing past financials and gaining a better understanding of future projects with the goal of seeing if there is an opportunity to continue the discussion. If we see a fit between our companies, we will congruently put together basic letter of intents (LOIs), due diligence and purchase agreements.
Combining the different parts of our investment process into an entire timeframe, we have closed deals on businesses in as short as 30-60 days and, in total, have a 100% success rate in all of our LOIs. This process is what makes STUCK Fund 1 different.
STUCK FUND 1 Investment Criteria
Location
Based in Southeastern Wisconsin is preferred but we would consider one throughout the US if it is the right opportunity
Revenue
Annual revenue ranging from $1-20M & EBITDA between $200,000 to 3M
Opportunity
The company has opportunities to be the sole source supplier/provider (only one supplier or part number is specified, creating a high margin opportunity)
Diversified Offerings
The company has diversification of order types (long term contracts exist, as well as quick order turns, to eliminate high levels of volatility)
Board Position
Investment will result in a board position
Proprietary
Product or service is proprietary in nature
- Product type is high mix/low volume (customized product/service offerings where small businesses can flourish)
History
Established entities that already have customers and unique products or services
- Right level of customers (no customer is greater than 25% of the overall revenue)
Industries
Niche industries with growth potential
- Products are within a vertical (niche) market (barriers to entry exist and expandable market may be smaller than larger players would want to service)
- Advanced or leading type of technology industry
- Manufacturing companies or value-added service providers
Growth Potential
Companies that have the ability to scale
- Growth potential is high through additional content offerings or potential additional customers
- Organization will use STUCK services to drive growth
- Companies that have talented and high potential employees that want to GROW
STUCK Fund 1 Investment Companies
Vendura Industries
At their location just outside of Madison, WI, Vendura Industries manufactures solid surfaces from start to finish. With a product mix of over 45, they offer non-emitted and resistant custom solutions including sinks, showers, tubs, countertops and shelves. These products are used in various industries including homes, hotels, hospitals, clinics, private firms, military and municipal buildings.
BioCut Systems
Located in Milwaukee, WI, BioCut Systems offers clean room compatible presses and dyes for the bioscience industry. Their goal is to provide safe and sterile presses that will streamline die cutting. As they specialize in regenerative medicine, BioCut Systems serves other areas including pharmaceutical companies, life science, bandage manufacturers and more.
Ardent Animal Health
Ardent Animal Health is located near Lexington, KY and offers regenerative medicine and oncology solutions for pets. Their accomplishments, including their Adipose Stem Cell Therapy kit, has lead to advancements in regenerative medicine and bringing those advancements to the market. They also collaborate with universities to further their studies and achieve their mission of offering solutions to animals in need.
» Visit ArdentWhy our companies are unique
Along with fitting our investment criteria, there are a few considerations that make our portfolio companies unique.
The first consideration is the situation and what the owner wants to do, either in their professional or personal life, that will affect the business. These potential situations can include the desire to retire, start a new career, or simply wanting a business partner to help them scale while staying in the game. To achieve any goal they may have, they then want to sell off their interest or ownership. Part of their succession plan could involve the team of entrepreneurs of STUCK Fund 1 as they will be looking for investment capital for the purpose of taking their business to the next level.
The employees at our companies are very talented, proving them to be an invaluable asset to the business’ growth. Without these employees, the workplace would not have the ability to create or achieve its goals. These goals are important as they benefit everyone from the customers, owner, and the employees. We look forward to retaining and developing employees that want to be part of our culture of growth.
Lastly, our companies have the ability to scale. This is due to their products and services being unique, in one or two niche vertical markets, having established customers, and having great brand equity. To maintain the current advantages and equity of our companies, we don’t change the names of the organizations that we invest in. When a business has the potential to scale, it will be possible for our strategies and tools to help them reach their highest potential.
