It was a marriage of the minds, said DivvyHQ co-founder Brody Dorland, describing his marketing tech firm’s recent investment from Novel Growth Partners.
The company’s leadership — Dorland and co-founder Brock Stechman — is honored to be recipients of NGP’s first investment, Dorland said. But the pairing didn’t come by accident, he added.
“I think they viewed us as a perfect starting point — right in their sweet spot, as far as SaaS company size, revenue growth and likelihood of quick return,” Dorland said.
Launched by Keith Harrington and Carlos Antequera in early 2018, Novel — a revenue-based funding firm — aims to provide underserved tech companies across the midwest with up to $500,000 in growth capital.
Harrington and Antequera dedicated a considerable amount of time to their search for Novel’s first investment, they said, noting early on such a firm would need to avoid the hockey-stick growth trope: meaning quick, exponential growth following a catalytic development in the business.
“We’ve been on the startup ride since 2011 and have maintained great year-over-year growth by normal business standards, but traditional venture capitals are looking for the next Facebook,” Dorland explained. “We’re just not that.”
The proof is in DivvyHQ’s stability and longevity, Antequera said.
“Their clients include many Fortune 500 companies — which is a testament to their product’s reliability and functionality,” he said.
The investment from NGP positions DivvyHQ to double-down on sales and marketing activities, while offering the company an unprecedented model for hands-on evaluation and coaching by Harrington and Antequera, Dorland said.
“Unlike typical VC’s who just provide capital and open up their rolodex, Carlos and Keith bring to bare their network of sales, marketing and customer experience experts (former employees of Netchemia) to work closely with our team to identify holes in our processes and look for opportunities for improvement,” Dorland explained.
“[The Novel] team is really what makes them special,” Stechman agreed. “They are proven entrepreneurs and investors who understand the fine intricacies of operating a business and what it takes to grow a successful tech company.”
Novel and DivvyHQ’s team have already engaged in a series of strategy meetings aimed at gaining focus and elevating the company’s sales and marketing activities, Dorland and Stechman said.
“It’s really been exciting to have a third party come in and push our team,” Dorland added.
With Novel having now made its first investment, the fund looks forward to using its unique approach to investing to further build its portfolio, Antequera said.