A technology company specialising in the circular economy, EUR 5 million in revenue, and an ambitious growth plan. This case illustrates how patient capital can accelerate the growth of companies with positive impact without sacrificing their mission.
Names, locations, and certain details of this case have been modified to protect the confidentiality of the parties involved. The figures and results are representative of the actual transaction.
A technology company specialising in solutions for processing and recovering value from industrial waste, founded seven years earlier by two engineers with experience in the chemical industry. The company had developed a proprietary technology that enabled the recovery of valuable materials from waste that had previously gone to landfill.
Revenue of EUR 5 million, EBITDA of EUR 700,000 (14%), 34 employees including engineers, technicians, and sales staff. The company operated from a pilot plant in an industrial park in eastern Spain, with capacity to process 8,000 tonnes of waste annually.
The founders had a clear vision: scale the technology to process 40,000 tonnes annually and become the European reference in their waste recovery niche. To achieve this, they needed to build a second plant (estimated investment of EUR 3.5 million), expand the sales team to win industrial clients in France, Italy, and Germany, and certify the technology under European end-of-waste standards.
The problem: the founders had financed growth to date with their own resources and government-backed loans. They had no further investment capacity and did not want to turn to conventional venture capital — they had seen how private equity funds pressured similar companies to grow at all costs, sacrificing technical quality and the environmental mission.
Financing growth without losing control or the mission. The founders wanted a partner who understood that technical quality was non-negotiable, that certification cycles take time, and that credibility with industrial clients is built through results, not presentations.
Scaling the operation. Moving from a pilot plant to an industrial operation required a leap in management capability: operations director, CFO, international sales team, quality control and environmental compliance systems.
Internationalisation. The Spanish market, though growing, was insufficient for the company’s ambitions. France, Italy, and Germany had more advanced waste regulation and potential demand three times greater.
Regulatory timing. European waste regulation was tightening rapidly. Large industries needed circularity solutions to meet their ESG reporting and recycling obligations. The window of opportunity was open, but it would not remain so indefinitely — competitors were also moving.
Unlike our restructuring transactions, there was no financial urgency here. The founders could choose a partner at their own pace, and they did.
Investment structure. Blue Mountain invested EUR 2.8 million in exchange for 40% of the shares. The investment was structured in two tranches: EUR 1.5 million at closing (to begin construction of the second plant and hire staff) and EUR 1.3 million conditional on achieving operational milestones (construction permits, first international contracts).
Governance. The founders retained 60% and operational control. A five-member board of directors was established (three appointed by the founders, two by Blue Mountain) with Blue Mountain veto rights limited to major decisions (borrowing above EUR 500,000, hiring of key executives, related-party transactions).
Shareholders’ agreement. It included anti-dilution protection for both parties, a put option for the founders exercisable from year 5 (at market valuation), standard tag-along and drag-along clauses, and a commitment to reinvest 50% of profits for the first three years.
Second plant. Construction of the new processing facility with 25,000 tonnes per year capacity. The project was completed in 13 months — two months behind the original plan due to complexities in environmental permits.
Management team. Hiring of an operations director with industrial plant experience, a CFO with a growth-company background, and two international sales managers (one for France, one for the DACH region).
Certifications. Obtaining the end-of-waste certificate for three of the company’s five processes, enabling the recovered material to be sold as secondary raw material rather than as waste. This tripled the value of the output.
New plant ramp-up. The second plant reached 70% of capacity within 12 months — ahead of plan, which had projected 18 months to reach that level.
Internationalisation. Signing of contracts with three major European industrial groups (two French, one German). The contracts were for 5 years with guaranteed minimum volumes, providing revenue visibility.
R&D. Development of two new recovery processes for additional waste streams, broadening the company’s addressable market.
| Metric | Start | 18 months | 30 months |
|---|---|---|---|
| Revenue | EUR 5.0M | EUR 7.2M | EUR 12.4M |
| EBITDA | EUR 700K (14%) | EUR 1.1M (15.3%) | EUR 2.3M (18.5%) |
| Headcount | 34 | 52 | 68 |
| Processing capacity | 8,000 t/year | 33,000 t/year | 33,000 t/year |
| Capacity utilisation | 85% | 55% | 78% |
| International clients | 0 | 2 | 5 |
| Tonnes processed | 6,800 | 18,200 | 25,700 |
Revenue increased 2.5x in 30 months. EBITDA tripled, with a margin that improved thanks to economies of scale and the higher value of certified output. The company went from being an interesting local player to a European reference in its niche.
Patient capital does not mean passive capital. Our contribution went far beyond money: access to our network of industrial contacts, experience in structuring international deals, support in selecting the management team, and financial management capability that the founders (excellent engineers) did not have.
Regulation as tailwind. Investing in sectors where regulation pushes in your favour is a structural advantage. Companies that position themselves before regulation becomes mandatory capture the most valuable clients and build barriers to entry that are difficult to replicate.
Profitable growth is possible. Many technology companies grow while sacrificing margin — “scale first, profitability later”. In this case, the company grew while maintaining and even improving its margins, because growth was based on a genuine technological advantage, not on cutting prices.
Internationalisation requires local presence. Selling waste processing technology from Spain to German industrial clients does not work by email. It requires people on the ground who speak the language, understand local regulation, and build relationships.
If you have a technology company with growth potential and are looking for a partner who understands your sector and respects your mission, let’s talk. The best partnerships begin with an honest conversation.
Founder of Blue Mountain
Over 15 years investing in Spanish companies with patient capital. Expert in business succession, corporate governance, and middle-market investment.
By Dirk Manuel Martens Jiménez
By Dirk Manuel Martens Jiménez
By Dirk Manuel Martens Jiménez
If you wish to explore a potential collaboration or present an investment opportunity, we invite you to contact us. We guarantee absolute confidentiality in all our conversations.