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Investing in software and services companies in Hungary and across Central Eastern Europe. We drive innovation and sustainability by building a future-proof portfolio. Our approach enables businesses to excel through effective governance and by unlocking new growth opportunities for lasting success.
FOCUSED ON SOFTWARE AND PROFESSIONAL SERVICES
We invest in small and medium-sized software and services businesses, including succession solutions. As dedicated shareholders, we bring expertise in product development, sales, and marketing to help drive growth.
LONG-TERM AND SUSTAINABLE
Our focus is on building sustainable profitability and healthy growth alongside you. With long-term capital, we are committed to your company’s development and do not pursue further sales of acquired companies.
ENTREPRENEURIAL
With extensive experience as shareholders in multiple software companies, we understand the challenges you face and provide strong, hands-on support beyond strategic guidance.
WHERE DOES THE NAME ‘SAPIENCE’ COME FROM?
“Sapience” refers to wisdom, sound judgement, or the ability to think and reason deeply, making sense of complex situations. It is often used to describe the capacity for insight, intelligence, and self-awareness. This is our guiding principle to approach any situation and collaborate with our portfolio companies.
OUR FOCUS: BUSINESS MODELS IN DEFINED MARKET SEGMENTS
We specialize in serving niche markets, such as industry-specific software with recurring revenue models, helping businesses build strong market positions.
We are long-term partners, committed to the sustainable and profitable development of companies. We provide strategic and product expertise to shareholders and managing directors, whether for succession planning, shareholder transitions, or growth initiatives.
As shareholders, we prioritize the holistic growth of the company. Long-term success is achieved together with employees, management, customers, and shareholders.
We seek to invest in companies that meet the following key criteria:
SUCCESSION SITUATION: Businesses where a transition in leadership, such as a founder or family succession, creates an opportunity for partnership and growth.
MISSION-CRITICAL PRODUCT OR SERVICE: Companies providing essential products or services that are integral to their customers’ operations.
LOW CUSTOMER CHURN: Businesses with a strong, loyal customer base, demonstrated by low churn and high customer retention.
COMPETITIVE ADVANTAGE & HIGHER MARGINS: Enterprises with a clear competitive edge, leading to above-average profitability and sustainable margins.
ASSET-LIGHT BUSINESS MODEL: Companies operating with minimal capital expenditures, enabling greater flexibility and scalability.
FOUNDER OR FAMILY-OWNED: We are particularly interested in founder-led or family-owned businesses where continuity and values alignment are key.
FINANCIAL THRESHOLD: Companies generating more than €1M EBITDA or €2M in revenue.
These criteria guide our investment approach, ensuring long-term value creation for both the businesses we invest in and their customers.
THE PATH TO COLLABORATION
The process of investment varies from case by case. However, in all processes, we consistently place great importance on developing the relationship with mutual respect and agreement. Hence, we welcome early contact: this allows both sides to decide, without time pressure, whether we are a good fit for each other.
INITIAL DISCUSSION
Bringing on a new shareholder also means passing on the responsibility for continuing your life’s work. In our initial discussions, we’ll work with you to decide if a collaboration aligns with both our visions.
FINANCIALS AND VALUATION
If we can envision working together, the next step is for us to gain an understanding of the company’s key financial figures and provide you with an indicative valuation.
INDICATIVE OFFER & DUE DILIGENCE
Next we prepare an offer in the form of a letter of intent. Along with that, we jointly establish a timeline and the scope of the subsequent examination of your company as part of the due diligence process.
As shareholders, we take responsibility for the sustainable development of our companies in the interests of our customers and employees.
Sapience Growth is decentralized, with each company remaining independent. Management enjoys maximum entrepreneurial freedom and can leverage the expertise of Sapience Growth for strategic and technical matters.
Sapience Growth is continuously growing by reinvesting its own profits, sufficient capital is available to further expand the group by adding new companies.
CO-FOUNDER
Invested into more than a dozen software companies as angel investors and as co-investment partner at EuroVentures. As an early-stage and growth stage investor and mentor, he has been investing for 15 years. The many exits of his in this capacity include AutoHop/BlaBlaCar, Bankmonitor, Pactic/Fürgefutár.
Built and grew Kirowski, an early digital agency into one of the largest agencies in CEE. After its successful exit, he led Isobar Global strategy at Dentsu Aegis Media/ Dentsu.
CO-FOUNDER
Invested in 20+ software companies as angel investor and as VC at Day1 and Sustainable Ventures in the past 8 years. The many exists of his in this capacity include Zeigo and Sennen Tech. He advised early-stage and growth tech companies with fundraising projects worth in total €50M.
Led fast-growth software businesses such as Packhelp and FaceKom, facilitating the exit of the latter.
© Sapience Capital 2024