Bifrost Studios invests in Harba Systems as part of our micro-cap private equity strategy. This marks the second acquisition in the past 20 months and an increased focus on micro-cap private equity.
We strongly believe in "purple ocean" plays, characterized by very obvious problems, predictable and stable industries, low adoption risk, and a fast pathway to high profitability. These attributes are all present in the context of Harba.
Furthermore, Harba's cloud-based marina management system is among the top products globally, historically built primarily for the Danish market. There is a consistent inbound flow of solution-seeking customers worldwide, despite minimal active commercial efforts outside Denmark.
The Bifrost Studios team comprises experts in digital products and the international scaling of SaaS business models, so we have high conviction in our ability to shape and execute an international commercial strategy with Harba.
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Portfolio Company Services
We invested on September 1st and have been hard at work preparing the business for the next phase. This phase includes meeting the team, diving deeper into the product, and making quick wins according to our frameworks.
Within the first sixty days, we completed a finance overhaul, shaped the product strategy and roadmap, updated pricing, built a new brand, created a new website, set up a new CRM, initiated the first GTM campaigns, and hired a new CEO for the company.
We prepare an extensive business review for the CEO, outlining our view on the business across all functions: sales, marketing, product, finance, etc., and list what we believe to be the most impactful quick wins. Although we have already initiated some of these strategies, it’s important that we share our logic and hand over all the context.
Following this handover, we give the CEO full autonomy to run the company as they see fit. We support them with our full service library and take over certain work streams when meaningful, but it’s now the CEO’s company.
We would like to thank the Founder of Harba, Christian Elkrog, for his great cooperation and efforts during this critical phase of Harba. We could not have done this process without his support and knowledge.
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Our most pressing goal is to scale revenue and reach profitability. We target a 12-24 month timeframe to achieve this, though it could happen even sooner.
Since we are under no LP pressure, we have the flexibility to pursue long-term ownership of the company, taking sizable dividends each year, or aiming for an exit.
There are only a handful of active players in this space globally, so conditions for future consolidations are favorable, positioning Harba well as both a target and a platform company.
Additionally, we see a long-term opportunity to repurpose the software for other relevant verticals.
Follow Bifrost Studios and Harba on LinkedIn for future updates.
