Scare the Bear Capital

What Scare the Bear Capital does

Scare the Bear Capital (STB) is a private investment firm founded in 2021 by Matthew Dean and headquartered in Falls Church, Virginia. The firm specializes in non-controlling minority investments paired with hands-on advisory services in lower middle market government contracting (GovCon) businesses, targeting companies with less than $40 million in revenue that are pursuing an exit within one to three years. STB's stated thesis is that small GovCon firms underprice themselves at exit because they lack the institutional maturity buyers expect; the firm counters this by deploying capital alongside a network of seasoned operators and a proprietary framework called the STB Valuation Drivers, which codifies twelve company functions (leadership structure, M&A experience, entrepreneurial growth story, marketing and branding, innovation, intentional culture, business development pipeline presentation, and others) that buyers reward with valuation premiums.

STB monetizes through two streams: equity returns realized upon portfolio company exits and advisory/consulting fees. Its disclosed portfolio includes Apira Technologies (computer vision and AI for national security, exited February 2026 to Woven Solutions), Knexus (AI-enabled public sector solutions and Google Public Sector Premier Partner, exited February 2026 to DC Capital Partners), and Foxtrot Professional Services (Palantir Foundry-native partner achieving 9.1x year-over-year revenue growth, Series A participation in February 2026 led by Spicewood Ventures). The firm is staffed by 1–10 people and supplements its internal team with strategic advisors drawn from Lockheed Martin, Accenture, Anser Advisory, Exiger, CISA, DoD, and the Intelligence Community.

The go-to-market is relationship-driven and niche-focused: deal sourcing relies on direct outreach and referrals within the GovCon ecosystem, supported by thought-leadership activity from Managing Partner Matthew Dean across M&A-focused podcasts (M&A Mastermind, sbLiftOff's GovCon M&A, Cohn Reznick, Inspiring People and Places) and the firm's own content marketing site at scarethebear.com. STB does not sell a software product, SaaS platform, or technology offering; its product is structured capital plus operator mentorship delivered through the STB Valuation Drivers methodology.

Name

Scare the Bear Capital

Legal name

Scare The Bear Capital, LLC

Website

https://scarethebear.com

Company type

Private

Founded year

2021

Operating status

Operating

Headcount range

1–10 employees

Short description

Scare the Bear Capital is a private investment firm that makes non-controlling equity investments paired with operator advisory services in lower middle market government contracting businesses with under $40 million in revenue. Founded in 2021 by Matthew Dean in Falls Church, Virginia, the firm applies a proprietary 12-driver valuation framework to help small GovCon founders prepare for exits within one to three years.

Ownership category

akta.pro rank

Product category

Private Equity / Growth Capital Investment

NAICS

All Other Financial Investment Activities (52399)

SIC

Investment Advice (6282)

akta.pro primary industry

Early-Stage Venture Capital (Series A/B) (FSANAAAB)

Keywords

• Private equity investment
• Lower middle market
• Government contracting
• Growth capital
• Value creation advisory

Headquarters

HQ city

Falls Church

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales

Revenue model

1. Investment Returns: STB generates returns through equity investments in lower middle market government contracting businesses, supporting them to maturity and value creation before facilitating exits to strategic buyers or private equity.
2. Consulting Services: The firm provides consulting services alongside capital investments, bringing industry expertise and advisors to support portfolio companies in improving business maturity and reducing risk.

Go-to-market motion2 records

Distribution channels2 records

Marketing channels5 records

Core offering

Scare the Bear Capital is a private equity firm that makes non-controlling equity investments in lower middle market government contracting (GovCon) businesses, paired with advisory services delivered through its proprietary STB Valuation Drivers framework covering 12 company functions. The firm targets small businesses with less than $40 million in revenue that plan to exit within 1-3 years, providing capital alongside experienced advisors to mentor leadership, improve enterprise maturity, reduce risk, and position the business for a premium valuation at exit.

Product overview

Scare the Bear Capital is a private investment firm, not a product or technology company. It provides non-controlling financial investments and consulting services to lower middle market government contracting (GovCon) businesses. The firm brings capital combined with experienced advisors who focus on 12 STB Valuation Drivers to mentor company leadership, reduce risk, and improve enterprise maturity and value. Scare the Bear Capital does not offer a standalone software product or SaaS platform — its offering is advisory services and capital investment focused on helping small businesses achieve valuations comparable to larger companies.

Differentiator

Problem solved

Functional benefit

Products and services

• Non-Controlling Equity Investment in GovCon Businesses
• STB Valuation Drivers Advisory Program

Quantifiable outcome

• Successful exit of portfolio companies to strategic buyers including Woven Solutions (Apira acquisition), DC Capital Partners (Knexus acquisition)
• +2 more outcomes

Named customers3 records

Segments2 records

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Scale indicators3 records

Recent moves5 records

Expansion highlights4 records

Direct peers

• Enlightenment Capital: A private investment firm focused exclusively on the government, defense, and intelligence sectors, with a similar lower middle market posture in GovCon. Directly comparable because it serves the same target founder/owner profile with capital and government sector operating expertise.
• ClearSky: A private equity firm investing in technology and tech-enabled service businesses in lower middle market segments including GovCon-adjacent cybersecurity and federal IT. Comparable because it targets similar-sized growth-stage companies with operating support.
• DC Capital Partners: A private equity firm focused on middle-market government services and defense companies. Directly comparable as both a competitor for deals and an acquirer (it acquired Knexus, an STB portfolio company) in the same GovCon lower middle market.
• Razor's Edge Ventures: A venture capital firm focused on early-stage and growth-stage companies in national security, defense, and government technology. Comparable because it invests in much of the same <$40M revenue GovCon/tech-enabled segment STB targets.
• McNally Capital: A private equity firm focused on lower middle market industrial and government-adjacent businesses. Comparable because it targets similar sized companies with operating partner support and 1-3 year value creation timelines.

Broad incumbents

• Falfurrias Management Partners: A middle-market private equity firm operating a broad portfolio across multiple sectors. Comparable as a buyer in STB's space (its portfolio company Woven Solutions acquired Apira Technologies) and as a competitor for similar GovCon founder-led businesses.
• Veritas Capital: A large private equity firm specializing in government and technology services. Comparable as a large-scale counterpart in the GovCon space and a likely eventual acquirer of STB portfolio companies in the same target segment.
• NewSpring Capital: A private equity firm with growth and lower middle market funds across multiple sectors including government services. Comparable in fund size and target company profile, with similar operating partner support.
• Insight Partners: A large growth-stage investment firm making minority and majority investments in technology and tech-enabled services. Comparable as a potential co-investor or alternative capital provider for the same tech-enabled GovCon founders STB targets.

Others

• Anser Advisory: A government services and consulting firm that acquired the founder's previous company (Markon Solutions) and later was acquired by Accenture. Indirectly comparable as the founder's prior platform and a potential acquirer/partner for STB portfolio companies in the GovCon ecosystem.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat3 records

Key risks6 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/scare-the-bear-capital

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments3 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Scare the Bear Capital