How Alex Macdonald Sold Velocity Black to CapitalOne for a Reported $297 Million
“Alex Mcdonald co-founded Velocity Black in 2014 and grew it to $30 million in net revenue. In 2022 they sold the business to Capital One for a reported $297 million,” shares Sam Thompson a Minneapolis business broker and the president of M&A firm Transitions In Business. “In this episode you’ll hear how to attract investors and the best way to attract high net worth individuals.”
In 2014 Alex Macdonald co-founded Velocity Black, a global digital concierge service for affluent clients. Unlike the basic concierge services of some credit cards, Velocity Black leverages technology and expert knowledge to curate personalized services such as travel, entertainment, shopping, and dining, accessible directly from your phone.
By 2022 the business had expanded to $30 million in net revenue, attracting attention from potential buyers that included Capital One, which acquired Velocity Black for a reported $297 million. In this episode, you’ll learn how to:
- Outsmart and compete with large corporations.
- Attract and retain high-net-worth individuals.
- Prepare for the post-fundraising phase of your business.
- Avoid a capital-raising mistake that could cost you millions.
- Build trust and foster confidence with potential investors and acquirers.
- Handle partners who demand exclusivity (without giving it to them).