Proven Ventures is a venture capital firm based in Omaha, Nebraska, established in 2020. The firm specializes in providing founder-friendly investments to Nebraska-based post-revenue startups and growth-stage companies aiming for profitability without significant equity dilution. Proven Ventures employs a unique "debt-equity" investment model, offering capital without fixed repayment terms, thereby allowing entrepreneurs to retain greater ownership and control over their companies' futures.
Key Strategic Focus
Proven Ventures targets investments in diverse teams leading companies within the Midwest's core industries, particularly fintech and healthtech sectors. The firm's strategic approach includes:
- Debt-Equity Financing: Investing by purchasing equity or convertible rights to equity while securing rights to payments based on a percentage of future revenue. As revenue grows and payments are made, equity is dynamically returned to the founder, ensuring they retain more ownership as the company scales.
- Active Partnership: Beyond capital, Proven Ventures offers strategic guidance, industry expertise, and high-value connections to accelerate growth. This includes assisting with sales strategies, marketing campaigns, and operational efficiencies to drive revenue growth.
Financials and Funding
In January 2024, Proven Ventures joined the Burlington Capital family of funds and announced the first close of its inaugural fund. This partnership aims to provide innovative venture capital financing through debt-equity structures, aligning investor and entrepreneur interests by focusing on sustainable and scalable growth.
Pipeline Development
Proven Ventures has made 18 investments across various industries, with a focus on business and productivity software. Notable portfolio companies include:
- AuditMiner: A business/productivity software company that received early-stage venture capital funding in August 2024.
- Innovative Long Term Care Solutions: A media and information services company that secured funding in April 2024.
- Startwave: A business/productivity software firm funded in March 2024.
- Retail Aware: A business/productivity software company that received later-stage venture capital funding in April 2023.
These investments reflect Proven Ventures' commitment to supporting companies with strong growth potential in the Midwest region.
Technological Platform and Innovation
Proven Ventures differentiates itself through its innovative debt-equity investment model, which combines elements of traditional venture capital and revenue-based financing. This approach ties payments to a percentage of monthly revenue, aligning investor and founder interests toward consistent, stable revenue growth. As revenue grows and payments are made, equity is dynamically returned to the founder, ensuring they retain more ownership as the company scales.
Leadership Team
Proven Ventures is led by General Partners Erica Wassinger and Nathan Preheim. Both bring extensive experience in venture capital and entrepreneurship, focusing on aligning investor and founder interests through innovative financing models.
Competitor Profile
Market Insights and Dynamics
The venture capital landscape is evolving, with firms exploring alternative investment models to better align with founder interests and promote sustainable growth. Proven Ventures' debt-equity approach positions it uniquely within this shifting market.
Competitor Analysis
Proven Ventures operates in a competitive environment alongside firms like Bessemer Venture Partners and Benchmark Capital. Bessemer Venture Partners, founded in 1911, focuses on early-stage investments across various sectors, managing assets of approximately $20 billion as of 2022. Benchmark Capital, established in 1995, is known for its equal partnership structure and early-stage investments, with notable successes including eBay and Uber.
Strategic Collaborations and Partnerships
The partnership with Burlington Capital enhances Proven Ventures' market position by providing additional resources and support for its investment activities. This collaboration aims to strengthen the firm's capacity to support portfolio companies effectively.
Operational Insights
Proven Ventures' debt-equity model offers a distinct competitive advantage by aligning investor and founder interests through revenue-based repayments and dynamic equity return mechanisms. This approach fosters sustainable growth and preserves founder ownership, differentiating the firm from traditional venture capital models.
Strategic Opportunities and Future Directions
Proven Ventures plans to continue leveraging its debt-equity investment model to support Nebraska-based startups and growth-stage companies. By focusing on sustainable growth and founder-friendly financing, the firm aims to expand its portfolio and contribute to the development of the Midwest's entrepreneurial ecosystem.
Contact Information
For more information, visit Proven Ventures' official website.
