Diamond State Ventures

Diamond State Ventures is a private equity firm based in Little Rock, Arkansas, focusing on investments in small and lower middle-market companies across the Midwest and Southeast United States. The firm manages approximately $125 million across multiple funds and typically invests between $1 million and $5 million per portfolio company. Investments are structured as subordinated debt with warrants, preferred equity, or a combination of these securities, allowing flexibility in optimizing a company's capital structure while minimizing shareholder dilution. Diamond State Ventures seeks to serve as a lead investor or co-investor in transactions totaling up to $25 million, collaborating with other private equity funds, strategic corporations, or angel investors.

The firm's investment strategy targets companies with annual revenues of at least $10 million and an EBITDA between $2 million and $6 million. Preferred industries include niche manufacturing, business services, media, consumer products and services, education, healthcare, and technology. Diamond State Ventures does not invest in seed or startup companies, focusing instead on more developed businesses with established operations.

Since its inception in 1999, Diamond State Ventures has invested in numerous companies, contributing to the growth and development of small and middle-market businesses in its target regions. The firm's approach emphasizes backing management teams pursuing exceptional opportunities that align with its investment criteria, aiming to foster long-term success and value creation for all stakeholders involved.