Arrowroot Capital Management, LLC, a Santa Monica, CA-based software-focused growth equity firm, closed its third fund, with over $177m in limited partner and general partner commitments.
Arrowroot Capital III, L.P., will continue to focus on providing growth capital for healthy, recurring revenue enterprise software companies in the lower-middle market.
Led by Founder & Managing Partner Matthew Safaii, the firm seeks to capitalize on the funding gap between early stage venture capital and larger traditional growth equity firms, targeting equity investments in the range of $5 million to $25 million with the flexibility to pursue larger opportunities.
The firm also brings support to their portfolio at this smaller end of the market through their Strategic Resources Group which provides direct consulting, recruiting, and thought leadership for best practices as they scale across Sales & Marketing, Human Capital, Technology, and Operations.
Arrowroot has already completed a number of investments throughout 2017 and expects to close additional opportunities prior to the end of the year.
Beyond Safaii, the team also includes Kareem El Sawy, Clem O’Donnell, Thomas Oh, Mara Lamoureux Edgar, Nima Shaian, Nathan Khalil, Anthony Contreras, Erik Huberman, David Hertog, Steve Kim, and Caitlin Stamm.