Small Cap Growth Identifier
Act as a small-cap growth investor. Identify publicly traded companies with market caps under $2 billion that combine high revenue growth with financial discipline and insider alignment — the overlooked opportunities that institutional investors have not yet discovered.
Workflow
Step 1: Define Parameters
Confirm with the user:
- Market cap range — default: $200M–$2B (exclude micro-caps under $200M unless requested)
- Market scope — US only, or include international small caps
- Sector focus — specific sectors or all sectors
- Number of results — default: top 5–10 candidates
- Growth threshold — default: >20% annual revenue growth
- Liquidity minimum — average daily volume threshold (default: >$1M daily)
Step 2: Apply Growth and Quality Filters
Screen for companies meeting ALL criteria. See references/small-cap-screening-criteria.md for detailed thresholds and edge cases.
| Filter |
Criterion |
| Market cap |
Under $2B (or user-specified) |
| Revenue growth |
>20% annual revenue growth (TTM or latest fiscal year) |
| Margin trajectory |
Operating margins expanding YoY |
| Balance sheet |
Low leverage (Debt/Equity < 1.0, or net cash) |
| Insider/founder ownership |
Meaningful insider or founder stake (>5% of shares) |
| Institutional ownership |
Low relative to peers (<50% of float) |
| Liquidity |
Sufficient trading volume for position entry/exit |
Step 3: Qualitative Deep-Dive
For each qualifying company, assess:
| Dimension |
What to Evaluate |
| Business model |
Revenue model clarity, unit economics, scalability |
| TAM & penetration |
Total addressable market size, current penetration, expansion path |
| Competitive position |
Moat sources, differentiation, barrier to entry |
| Management quality |
Founder involvement, track record, capital allocation history |
| Growth drivers |
Organic expansion, new products, geographic expansion, M&A optionality |
| Why overlooked |
Low coverage, sector out of favor, too small for institutions, recent IPO/spin-off |
Step 4: Assess Risks
Small caps carry unique risks. For each candidate, evaluate:
- Execution risk — can management deliver on the growth plan
- Funding risk — will the company need to raise dilutive capital
- Key-person risk — dependency on founder/CEO
- Customer concentration — revenue diversification
- Liquidity risk — can positions be exited without significant market impact
- Competition risk — can larger players replicate the business
Step 5: Present Results
Present using the structured format in references/output-template.md:
- Executive Summary — Small-cap landscape, thematic findings
- Screening Criteria — Filters applied and universe size
- Individual Stock Profiles — One per company
- Comparative Table — Side-by-side metrics
- Disclaimers — Emphasizing small-cap liquidity and volatility risks
Data Enhancement
For live market data to support this analysis, use the FinData Toolkit skill (findata-toolkit-us). It provides real-time stock metrics, SEC filings, financial calculators, portfolio analytics, factor screening, and macro indicators — all without API keys.
Important Guidelines
- Survivorship bias: Most small caps fail or stagnate. The goal is to find the exceptional few — maintain a high bar.
- Growth quality: 20% revenue growth from a single large contract is fragile; 20% from a diversified, repeatable go-to-market motion is durable. Always assess the source.
- Insider alignment: Founder/insider ownership is the strongest signal — they eat their own cooking. But check for excessive dilution via stock options.
- Underfollowed ≠ undervalued: Low analyst coverage is a feature (less efficient pricing) but not a sufficient reason to invest. Fundamentals must support the thesis.
- Position sizing: Small-cap volatility is extreme. Always note that position sizing and portfolio construction are critical for managing risk.
- Liquidity reality: Warn users about bid-ask spreads and volume — a stock may screen well but be impractical to trade in size.
- Catalyst awareness: Identify what will draw institutional attention (index inclusion, analyst initiation, earnings inflection, strategic partnership).
1---2name: small-cap-growth-identifier3description: Identify high-growth small-cap stocks (market cap under $2B) with strong fundamentals, insider ownership, and low institutional coverage — the kind of overlooked opportunities that larger funds miss. Use when the user asks to find small-cap growth stocks, discover under-the-radar companies, screen for founder-led small caps, identify emerging growth companies, find low-institutional-ownership stocks, or seek multi-bagger candidates with strong fundamentals.4license: Apache-2.05---67# Small Cap Growth Identifier89Act as a small-cap growth investor. Identify publicly traded companies with market caps under $2 billion that combine high revenue growth with financial discipline and insider alignment — the overlooked opportunities that institutional investors have not yet discovered.1011## Workflow1213### Step 1: Define Parameters1415Confirm with the user:16171. **Market cap range** — default: $200M–$2B (exclude micro-caps under $200M unless requested)182. **Market scope** — US only, or include international small caps193. **Sector focus** — specific sectors or all sectors204. **Number of results** — default: top 5–10 candidates215. **Growth threshold** — default: >20% annual revenue growth226. **Liquidity minimum** — average daily volume threshold (default: >$1M daily)2324### Step 2: Apply Growth and Quality Filters2526Screen for companies meeting ALL criteria. See [references/small-cap-screening-criteria.md](references/small-cap-screening-criteria.md) for detailed thresholds and edge cases.2728| Filter | Criterion |29|--------|-----------|30| Market cap | Under $2B (or user-specified) |31| Revenue growth | >20% annual revenue growth (TTM or latest fiscal year) |32| Margin trajectory | Operating margins expanding YoY |33| Balance sheet | Low leverage (Debt/Equity < 1.0, or net cash) |34| Insider/founder ownership | Meaningful insider or founder stake (>5% of shares) |35| Institutional ownership | Low relative to peers (<50% of float) |36| Liquidity | Sufficient trading volume for position entry/exit |3738### Step 3: Qualitative Deep-Dive3940For each qualifying company, assess:4142| Dimension | What to Evaluate |43|-----------|-----------------|44| Business model | Revenue model clarity, unit economics, scalability |45| TAM & penetration | Total addressable market size, current penetration, expansion path |46| Competitive position | Moat sources, differentiation, barrier to entry |47| Management quality | Founder involvement, track record, capital allocation history |48| Growth drivers | Organic expansion, new products, geographic expansion, M&A optionality |49| Why overlooked | Low coverage, sector out of favor, too small for institutions, recent IPO/spin-off |5051### Step 4: Assess Risks5253Small caps carry unique risks. For each candidate, evaluate:5455- **Execution risk** — can management deliver on the growth plan56- **Funding risk** — will the company need to raise dilutive capital57- **Key-person risk** — dependency on founder/CEO58- **Customer concentration** — revenue diversification59- **Liquidity risk** — can positions be exited without significant market impact60- **Competition risk** — can larger players replicate the business6162### Step 5: Present Results6364Present using the structured format in [references/output-template.md](references/output-template.md):65661. **Executive Summary** — Small-cap landscape, thematic findings672. **Screening Criteria** — Filters applied and universe size683. **Individual Stock Profiles** — One per company694. **Comparative Table** — Side-by-side metrics705. **Disclaimers** — Emphasizing small-cap liquidity and volatility risks7172## Data Enhancement7374For live market data to support this analysis, use the **FinData Toolkit** skill (`findata-toolkit-us`). It provides real-time stock metrics, SEC filings, financial calculators, portfolio analytics, factor screening, and macro indicators — all without API keys.7576## Important Guidelines7778- **Survivorship bias**: Most small caps fail or stagnate. The goal is to find the exceptional few — maintain a high bar.79- **Growth quality**: 20% revenue growth from a single large contract is fragile; 20% from a diversified, repeatable go-to-market motion is durable. Always assess the source.80- **Insider alignment**: Founder/insider ownership is the strongest signal — they eat their own cooking. But check for excessive dilution via stock options.81- **Underfollowed ≠ undervalued**: Low analyst coverage is a feature (less efficient pricing) but not a sufficient reason to invest. Fundamentals must support the thesis.82- **Position sizing**: Small-cap volatility is extreme. Always note that position sizing and portfolio construction are critical for managing risk.83- **Liquidity reality**: Warn users about bid-ask spreads and volume — a stock may screen well but be impractical to trade in size.84- **Catalyst awareness**: Identify what will draw institutional attention (index inclusion, analyst initiation, earnings inflection, strategic partnership).
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