Falfurrias Capital Partners acquires majority interest in DCTech company Industry Dive
Congratulations to the co-founders, CEO Sean Griffey (pictured above), CRO Ryan Willumson, CTO Eli Dickinson and the entire Industry Dive team, the best little company that DCInno never heard of. Industry Dive announced today that Falfurrias Capital Partners acquired a majority stake in the DC-based company.
According to the company, Industry Dive, “provides premium business news, original analysis, and other information products and services to more than 7 million executives across 19 industry verticals ranging from banking and supply chain to retail and waste.”
Founded 7 years ago, in 2012, Industry Dive started with a $900 thousand capital infusion by the founders and a small group of local Angels. Angels contributed $400 thousand in an initial seed round. That round was followed by another $250 thousand in equity and $250 thousand in convertible debt. The Washington Business Journal reported 2018 revenues as “roughly $22 million.”
The company’s acquisition press release states, “Industry Dive’s three-year growth rate of 348% placed the company in the top half of the Deloitte Technology Fast 500 and earned it a ranking as the 13th fastest-growing media company on the 2019 Inc. 5000 list. The company also has been recognized three years in a row as a top workplace by the Washington Post, and has received several industry awards for editorial excellence in business journalism.” And
I don’t know about you but I find it amazing that DCInno, a rag that has 40 articles mentioning LifeFuels, a company that has zero revenue since it’s founding in April of 2014, noticed and awarded Industry Dive (only 19 mentions of a company that is 2 years older and is a real company) with the “Prestigious” DCinno Office Envy Award. An award they share with LifeFuels. However, Industry Dive made the, “Not Quite Annual Not Quite 100 #DCTech Companies I Don’t Hate” list all four years of the award’s existence. LifeFuels is unlikely to ever make that list. Last year, Industry Dive received special mention in the “I Don’t Hate” award, listed with 10Pearls, and Upright Labs as one of three “Hidden Gems.”
Falfurrias, based in Charlotte NC, made an unsolicited approached just three 3 months ago. The Industry Dive team weren’t running a process to raise money or sell the company. There had been approaches in the past from other companies that the management team rebuffed. When asked what was different this time, Co-founder and CEO Sean Griffey, Industry Dive explained that Falfurrias understood the business, presented a plan that Griffey said, was compatible with his vision.
The money allows the management team, the original Angel Investors to take their pro-rata share of the cash off the table and maintain a pro-rata stake in tin the company. While Falfurrias has taken a controlling position in the company they expressed their interest to keep the company management team in place and to provide financial backing to allow the company to acquire other media properties.
Industry Dive is an example to all startups in DCTech. Here’s a company that was capital efficient. Took in less than a million dollars in outside cash. Spent zero time and effort bloviating on the DCTech back-slapping, self-congratulating hype meeting circuit. This is a company that spent more time and money building a business instead of building the reputation of the founders. Grew quickly, reached profitability quickly, created a wealth… and are positioned to grow that wealth.