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Since the age of 12, Grant Hensel aspired to be an entrepreneur, and his professional journey proves that he has made that dream a reality. Since 2010, he has founded ten companies, including Encore Resale Store, eTestNotes.com, Viibrant, Backbone Local, RoundUp App, and Nonprofit Megaphone, among others. While some ventures failed and others were acquired, each experience contributed to his growth as a founder. Together with his wife Julia, Grant launched a self-funded SF and acquired Lexigate, an SEO agency with a 20-person team serving personal injury attorneys. The business is now operated by Julia.
After discovering that the success rate of ETA significantly exceeds that of traditional startups, Grant began personally backing self-funded searchers. He also shared his deal flow with a network of mentors, who ultimately encouraged him to launch an investment vehicle, leading to the creation of Entrepreneurial Capital.
With the backing of 54 investors, Entrepreneurial Capital Fund I has announced a first close at $9M (targeting a total of $10M) to invest in profitable, “boring” small businesses in the U.S. and Canada. The fund will focus exclusively on backing self-funded searchers, as they believe this model offers several advantages over traditional SFs: self-funded entrepreneurs typically have more experience, are fully invested in the outcome (“skin in the game”), and retain operating control of the company, unlike the board-driven model of traditional SFs. Their investment criteria target businesses with over $750K in EBITDA, a 3x–5x acquisition multiple, low customer concentration, minimal CapEx requirements, low cyclicality, and a strong track record of profitability. The strategy is to deploy between $250K and $1M per deal across approximately 15 acquisitions over the next three years, acquiring roughly 20% ownership in each company and taking an advisory board seat.
Grant shared with us: “We want to be very hands-on, helping searchers navigate the complexities of buying and operating a single business. We are not just financiers, our goal is to provide meaningful support, encouragement, and serve as true partners post-close. As searchers ourselves, we understand the unique challenges and rewards of acquiring and scaling small businesses. We add value through our investor community, which is made up primarily of experienced business owners.”
Grant’s life has been driven by a passion for building and investing in businesses that create meaningful impact. Entrepreneurial Capital, which has a team of four professionals, is his way of paying it forward and supporting hard-working, trustworthy operators in acquiring and scaling enduring companies.