1
Solid models
Cash-generating businesses with sound models and established, often founder-built teams; working products in growing or stable markets, ideally capital-light, that are simply too small or specialized to be on the institutional radar.
Eminent businesses in full color.
Chroma buys small yet excellent companies and builds them into enduring leaders in their category.
Approach
Moats without castles
Businesses with every structural advantage they need - customer trust, a strong niche, durable cash flows - but are still small.
2
Durable advantages
Sticky customers, natural pricing power, low-cost producer status, or a trusted brand; a real reason customers stay - be it reputation, switching costs, or a unique capability. A leader within its niche with clear room to grow.
3
Consistent fundamentals
Meaningful value comes from getting the fundamentals right rather than heroic assumptions or perfect execution. Most of what Chroma unlocks is operational: doing the basics consistently well so the core model can shine.
4
The right incentives
Sensible entry prices with little to no leverage, where strengthening the basics builds lasting value - developing the company to its full potential, and building foundational mechanisms to let it thrive for the long term.
Criteria
Where we spend time
We are willing to look at most B2B businesses. The sectors below are where we spend the most time and carry the most conviction.
Vertical software
Vertical SaaS with durable recurring revenue and sticky customers.
Home services
Plumbing, electrical, HVAC and related trades with steady demand.
Manufacturing
Specialized, niche makers with pricing power, repeat business, and technical depth.
Aerospace
Precision components and services supporting long program lifecycles.
Investment criteria
We buy good businesses and make them legible to their market: easier to see, understand, and value for customers, employees, and future buyers.
- All B2B; open to most sectors, with emphasized verticals
- ~$5M – $20M revenue, $1M – $5M EBITDA, with solid balance sheets
- Growing or stable markets; ideally capital-light models with structural potential for high returns on capital
- Management welcome to remain in seat; outside operators brought in to assist
- Full operational development, not roll-ups or financial engineering as the value driver
Contact
Have a business worth building on?
We would love to hear from founders, management teams, and advisors. We'd rather spend a day in person with you than a week in your data room - no formalities required.
You can reach all the founding partners with the email below: