SuRo Capital Corp. (SSSS): Business Model Canvas [11-2024 Updated]
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SuRo Capital Corp. (SSSS) Bundle
SuRo Capital Corp. (SSSS) operates within the dynamic landscape of venture capital, focusing on high-growth companies that promise significant returns. This blog post delves into the company's Business Model Canvas, exploring its strategic partnerships, key activities, and unique value propositions. Discover how SuRo Capital navigates the investment landscape to create value for its diverse customer segments and maintain a robust revenue stream.
SuRo Capital Corp. (SSSS) - Business Model: Key Partnerships
Collaborations with Venture Capital Firms
SuRo Capital Corp. collaborates with various venture capital firms to enhance its investment strategy and broaden its access to deal flow. As of September 30, 2024, the company had investments in non-controlled/non-affiliate investments amounting to $189,057,313, with a total portfolio value of $199,302,778. These collaborations allow SuRo to leverage the expertise and networks of established venture capital firms, which can lead to more informed investment decisions and increased potential for returns.
Strategic Alliances with Portfolio Companies
SuRo Capital has established strategic alliances with its portfolio companies, which are crucial for driving growth and operational efficiencies. The company's controlled investments as of September 30, 2024, were valued at $1,600,000, while non-controlled/affiliate investments were valued at $8,645,465. By partnering closely with these companies, SuRo Capital can provide value-added support such as strategic guidance, operational expertise, and access to additional funding sources, thereby enhancing the overall performance of its investments.
Partnerships with Investment Funds and SPVs
The company actively engages in partnerships with various investment funds and Special Purpose Vehicles (SPVs). As of September 30, 2024, SuRo Capital's total investments included significant positions in these entities, which facilitate targeted investment strategies and risk management. For example, the investment in Colombier Sponsor II LLC, a SPAC, involved strategic capital allocation that is expected to yield returns in line with market expectations. The company's total liabilities included $49,158,918 related to the 6.00% Notes due December 30, 2026, reflecting its financing strategies to support these partnerships.
| Partnership Type | Investment Value | Notes |
|---|---|---|
| Collaborations with Venture Capital Firms | $189,057,313 | Access to broader deal flow and expertise |
| Strategic Alliances with Portfolio Companies | $1,600,000 (controlled), $8,645,465 (non-controlled/affiliate) | Value-added support and operational efficiencies |
| Partnerships with Investment Funds and SPVs | Significant positions in SPACs and investment funds | Facilitates targeted strategies and risk management |
SuRo Capital Corp. (SSSS) - Business Model: Key Activities
Investing in equity and equity-related securities
SuRo Capital Corp. focuses on investing in equity and equity-related securities across various sectors. As of September 30, 2024, the total portfolio investments amounted to $199,302,778, with a cost basis of $241,532,648. The breakdown of investments includes:
| Type of Investment | Cost Basis | Fair Value | Percentage of Net Assets |
|---|---|---|---|
| Non-Controlled/Non-Affiliate Investments | $219,324,308 | $189,057,313 | 120.0% |
| Non-Controlled/Affiliate Investments | $20,605,400 | $8,645,465 | 5.5% |
| Controlled Investments | $1,602,940 | $1,600,000 | 1.0% |
These investments are primarily focused on sectors such as technology, healthcare, and e-commerce, reflecting the company’s strategy to capitalize on growth opportunities.
Conducting due diligence on potential investments
Due diligence is a critical component of SuRo Capital's investment process. The company employs a rigorous evaluation process to assess potential investments. This includes analyzing financial statements, market conditions, competitive positioning, and growth potential. As of September 30, 2024, the company reported a net investment loss of $3,222,902 for the nine months ended, indicating the importance of thorough due diligence in mitigating risks.
For example, recent investments in companies like Learneo, Inc. and CW Opportunity 2 LP highlight the company's strategy to engage in sectors with high growth potential. The fair value of Learneo, Inc. as of September 30, 2024, is $10,832,901, with a cost basis of $5,000,001, showcasing a significant appreciation in value.
Monitoring portfolio performance and market trends
SuRo Capital actively monitors the performance of its portfolio investments and overall market trends. As of September 30, 2024, the net change in unrealized appreciation of investments was a loss of $18,418,370. This highlights the volatility in market conditions and the need for continuous performance assessment. The company’s investment strategy allows for adjustments based on market dynamics to optimize returns.
The ratio of net operating expenses to average net assets was reported at 10.10% for the three months ended September 30, 2024, which reflects the operational efficiency and management of portfolio performance.
SuRo Capital Corp. (SSSS) - Business Model: Key Resources
Experienced investment management team
SuRo Capital Corp. boasts an experienced investment management team that has a track record in venture capital and private equity investments. This team is crucial for the identification and management of investment opportunities. The management team is responsible for overseeing an investment portfolio valued at approximately $199.3 million as of September 30, 2024.
Access to venture capital networks
SuRo Capital maintains strong connections within the venture capital ecosystem, enabling access to a diverse range of investment opportunities. The firm's portfolio includes various sectors such as technology, education, and consumer services. The geographic distribution of its investments as of September 30, 2024, shows a significant focus on the West, accounting for 33.9% of the portfolio, followed by the Northeast at 27.2%.
| Geographic Region | Fair Value | Percentage of Portfolio | Percentage of Net Assets |
|---|---|---|---|
| West | $67,596,353 | 33.9% | 42.9% |
| Northeast | $54,288,613 | 27.2% | 34.5% |
| Midwest | $37,441,611 | 18.8% | 23.8% |
| Southeast | $23,732,988 | 11.9% | 15.1% |
| International | $16,243,213 | 8.2% | 10.3% |
Capital for investment activities
As of September 30, 2024, SuRo Capital had total assets amounting to $233.8 million. The company's capital structure includes significant liabilities, such as $49.2 million in 6.00% Notes due 2026 and $24.2 million in 6.50% Convertible Notes due 2029. This financial framework allows SuRo Capital to engage in substantial investment activities, providing a robust platform for future growth.
| Liabilities | Amount |
|---|---|
| Accounts payable and accrued expenses | $2,985,454 |
| Dividends payable | $44,700 |
| 6.00% Notes due December 30, 2026 | $49,158,918 |
| 6.50% Convertible Notes due August 14, 2029 | $24,155,570 |
| Total Liabilities | $76,344,642 |
SuRo Capital Corp. (SSSS) - Business Model: Value Propositions
Focus on high-growth, venture-backed companies
SuRo Capital Corp. primarily invests in high-growth, venture-backed companies, focusing on sectors such as technology, healthcare, and consumer goods. As of September 30, 2024, the fair value of non-controlled/non-affiliate investments was $189,057,313, while controlled investments were valued at $1,600,000. This strategic focus allows the company to capture significant upside potential in emerging markets and innovative business models.
Potential for significant capital gains
The company's investment strategy is designed to yield substantial capital gains. For instance, the net change in unrealized appreciation of investments for the nine months ended September 30, 2024, was $(18,418,370), compared to $8,648,931 in the prior year. This highlights the volatility and potential for high returns inherent in the venture capital space, as SuRo Capital actively manages its portfolio to maximize value during favorable market conditions.
Expertise in identifying promising investment opportunities
SuRo Capital's team possesses extensive expertise in identifying and evaluating promising investment opportunities. The company has a portfolio turnover ratio of 2.30% for the nine months ended September 30, 2024, which reflects its proactive approach to managing investments. Furthermore, the weighted-average net assets were reported at $161,407,400, indicating a robust asset base from which to leverage growth.
| Investment Type | Fair Value (as of 09/30/2024) | Cost | Percentage of Net Assets |
|---|---|---|---|
| Non-Controlled/Non-Affiliate Investments | $189,057,313 | $219,324,308 | 90.52% |
| Controlled Investments | $1,600,000 | $1,602,940 | 5.89% |
| Total Portfolio Investments | $199,302,778 | $241,532,648 | 121.90% |
In terms of market performance, the net asset value per share at the end of the third quarter of 2024 was reported at $6.73, down from $7.99 at the beginning of the year. This shift illustrates both the challenges and opportunities present in the venture capital landscape as SuRo Capital navigates through various investment cycles.
SuRo Capital Corp. (SSSS) - Business Model: Customer Relationships
Regular communication with investors
SuRo Capital Corp. maintains a structured approach to communication with its investors. The company employs various channels to keep investors informed about its performance and strategy. As of September 30, 2024, SuRo Capital reported net assets of $157,437,207, down from $203,357,646 at the beginning of the year. This decline in net assets highlights the importance of ongoing communication to reassure investors regarding the company’s strategic direction and financial health.
Transparency in reporting and disclosures
Transparency is a cornerstone of SuRo Capital’s investor relations. The company provides detailed financial reports, including condensed consolidated statements of operations and changes in net assets. For instance, for the nine months ended September 30, 2024, the net change in net assets resulting from operations was reported at $(22,065,346), reflecting significant investment losses. The company’s commitment to transparent disclosures is evident in its regular updates, which include information on net investment loss, realized and unrealized gains and losses, and stock-based compensation expenses.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Assets | $157,437,207 | $211,971,043 |
| Net Change in Net Assets Resulting from Operations | $(22,065,346) | $4,616,509 |
| Stock-Based Compensation | $428,835 | $405,858 |
| Earnings Per Share (Diluted) | $(0.23) | $0.99 |
Engagement through shareholder meetings
SuRo Capital engages its shareholders through regular meetings, providing a platform for direct interaction between management and investors. These meetings facilitate discussions on company performance, strategic initiatives, and future outlook. Shareholder engagement is critical, especially during times of financial volatility, as it allows the company to address concerns and gather feedback directly from investors. For instance, the company reported a share repurchase of 2,000,000 shares at $4.70 per share during its modified Dutch Auction tender offer, which demonstrates its commitment to returning value to shareholders.
SuRo Capital Corp. (SSSS) - Business Model: Channels
Direct investment in portfolio companies
As of September 30, 2024, SuRo Capital Corp. reported total portfolio investments valued at $199,302,778, with controlled investments amounting to $1,600,000 and non-controlled/non-affiliate investments valued at $189,057,313. The company has made significant investments in various sectors, including software-as-a-service, artificial intelligence, and education technology.
Secondary marketplaces for private equity investments
In the nine months ending September 30, 2024, SuRo Capital Corp. realized a net change in unrealized appreciation of investments totaling $11,614,384. The company has engaged in secondary market transactions to optimize its portfolio, with proceeds from sales of investments in portfolio companies reaching $14,941,469. The overall net change in net assets resulting from operations for this period was $(5,452,245).
Online platforms for investor relations
SuRo Capital Corp. actively utilizes online platforms to enhance investor relations, evidenced by a market value per share of $4.04 as of September 30, 2024. The total number of shares outstanding at the end of the period was 23,378,002, reflecting a decrease from 25,445,805 at the beginning of the year. This engagement strategy is critical for maintaining transparency and fostering investor confidence.
| Channel Type | Value/Performance Metric | Date |
|---|---|---|
| Total Portfolio Investments | $199,302,778 | September 30, 2024 |
| Controlled Investments | $1,600,000 | September 30, 2024 |
| Net Change in Unrealized Appreciation | $11,614,384 | September 30, 2024 |
| Proceeds from Sales of Investments | $14,941,469 | September 30, 2024 |
| Market Value per Share | $4.04 | September 30, 2024 |
| Total Shares Outstanding | 23,378,002 | September 30, 2024 |
SuRo Capital Corp. (SSSS) - Business Model: Customer Segments
Institutional investors seeking high returns
SuRo Capital Corp. targets institutional investors, including pension funds, endowments, and insurance companies, who are looking for high-yield investment opportunities. As of September 30, 2024, SuRo Capital reported total investments valued at $199,302,778, representing a significant portion of its portfolio aimed at generating attractive returns for these institutional clients.
In 2024, the net asset value per share was reported at $6.73, reflecting the company's focus on delivering value to its institutional investors. The weighted-average common shares outstanding were 23,378,002, indicating a solid base for institutional investment interest.
Individual accredited investors
SuRo Capital also serves individual accredited investors, who typically seek to diversify their portfolios with alternative investments. The company provides these investors access to private equity and venture capital opportunities, which are often not available through traditional investment avenues.
As of September 30, 2024, SuRo Capital's total assets were reported at $233,781,849, with net assets at $157,437,207. The company’s investment strategy includes a mix of controlled and non-controlled investments, appealing to individual investors looking for high-growth potential.
Venture capital firms and other financial institutions
In addition to institutional and individual investors, SuRo Capital collaborates with venture capital firms and other financial institutions. This segment is crucial for co-investment opportunities, sharing risk, and accessing a broader range of investment deals. The company’s portfolio includes significant stakes in various sectors, including Software-as-a-Service and Artificial Intelligence, which align with the interests of venture capitalists.
SuRo Capital's investment in AI infrastructure and application companies, valued at $42,155,290 as of September 30, 2024, demonstrates its strategic alignment with trends favored by venture capital firms.
| Customer Segment | Key Metrics | Investment Focus |
|---|---|---|
| Institutional Investors | Net Asset Value per Share: $6.73 Total Investments: $199,302,778 |
High-yield investment opportunities |
| Individual Accredited Investors | Total Assets: $233,781,849 Net Assets: $157,437,207 |
Private equity, venture capital |
| Venture Capital Firms | Investment in AI Infrastructure: $42,155,290 | Co-investment opportunities, tech sectors |
SuRo Capital Corp. (SSSS) - Business Model: Cost Structure
Operating expenses related to investment management
Total operating expenses for SuRo Capital Corp. decreased to $4,096,590 for the three months ended September 30, 2024, compared to $4,134,172 for the same period in 2023. For the nine months ended September 30, 2024, total operating expenses were $13,530,561, down from $14,832,577 in 2023.
Key components of these operating expenses include:
- Compensation expense: $1,916,361 (Q3 2024) vs. $2,123,704 (Q3 2023)
- Directors’ fees: $171,661 (Q3 2024) vs. $161,661 (Q3 2023)
- Professional fees: $515,244 (Q3 2024) vs. $277,075 (Q3 2023)
- Interest expense: $1,153,466 (Q3 2024) vs. $1,215,248 (Q3 2023)
- Other expenses: $339,858 (Q3 2024) vs. $356,484 (Q3 2023)
| Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Compensation Expense | $1,916,361 | $2,123,704 |
| Directors’ Fees | $171,661 | $161,661 |
| Professional Fees | $515,244 | $277,075 |
| Interest Expense | $1,153,466 | $1,215,248 |
| Other Expenses | $339,858 | $356,484 |
Fees associated with investment advisory services
SuRo Capital Corp. incurs fees related to investment advisory services, which are typically a percentage of the assets under management (AUM). As of September 30, 2024, the total assets managed by SuRo were approximately $199,302,778. While specific advisory fees are not detailed in the provided data, they generally contribute significantly to the overall operating expenses.
Administrative costs and compliance expenses
Administrative costs have been a significant part of SuRo Capital’s operating expenses. As of September 30, 2024, these costs are reflected in the total operating expenses of $13,530,561 for the nine months ended September 30, 2024. This includes compliance expenses necessary to adhere to regulatory requirements, which have increased due to heightened scrutiny in the financial sector.
Specific compliance expenses were not itemized, but they usually encompass:
- Legal and regulatory compliance fees
- Audit and tax preparation fees
- Insurance costs related to business operations
Overall, the administrative and compliance expenses form a critical part of the cost structure, ensuring operational integrity and adherence to regulatory frameworks.
SuRo Capital Corp. (SSSS) - Business Model: Revenue Streams
Capital gains from equity investments
SuRo Capital Corp. generates revenue from capital gains on its equity investments. As of September 30, 2024, the total value of investments at fair value was approximately $199.3 million, which includes both controlled and non-controlled investments. The company reported a net change in unrealized appreciation of investments amounting to $11,614,384 for the three months ended September 30, 2024.
| Investment Type | Cost | Fair Value | Net Change in Unrealized Appreciation |
|---|---|---|---|
| Non-controlled/non-affiliate investments | $219,324,308 | $189,057,313 | $11,614,384 |
| Non-controlled/affiliate investments | $20,605,400 | $8,645,465 | $0 |
| Controlled investments | $1,602,940 | $1,600,000 | $0 |
Income from preferred stock dividends
SuRo Capital Corp. also earns income through preferred stock dividends. For the nine months ended September 30, 2024, the company reported dividend income of $188,028 from its investments. Additionally, the company holds various preferred equity positions which generally yield dividends that contribute to the overall revenue stream.
| Investment Type | Dividend Income (9 Months Ended Sept 30, 2024) |
|---|---|
| Preferred shares, Series A | $10,832,901 |
| Preferred shares, Series C | $9,999,971 |
Management fees from investment funds
Management fees are another significant revenue source for SuRo Capital Corp. The company charges management fees for its investment funds, contributing to its operating income. As of September 30, 2024, the total investment income from management fees was reported at $888,717 for the quarter. The management fees are typically based on a percentage of the assets under management (AUM), which directly correlates with the performance of the funds.
| Fee Type | Amount |
|---|---|
| Total Management Fees (Q3 2024) | $888,717 |
| Average Net Assets (Q3 2024) | $161,407,400 |
Updated on 16 Nov 2024
Resources:
- SuRo Capital Corp. (SSSS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of SuRo Capital Corp. (SSSS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View SuRo Capital Corp. (SSSS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.