Private Equity & Venture Capital
Strategy consulting for private equity firms
Arete Ventures is one of the selected few private equity consulting firms in San Francisco & Mumbai that has buy side experience with PE Deals in USA. For more than a decade, we have offered boutique consulting services to PE clients and credible institutions in Silicon Valley & Wall street.
From deal origination to deal closure and beyond, our private equity consultants in India & USA provide full fledged support across the full transaction cycle. Through confidential and multi-disciplinary due diligence approach, our pe practice offers identifying attractive investments, strategic due diligence, value creation, value growth and exit support.
Primary reason of being one of the best consulting firms for private equity is largely attributed to our business strategy consulting experience involving business turnaround, performance improvement, corporate & growth strategy experience in the most competitive North American & European region. Our deep industry knowledge and domain expertise helps private equity firms and institutional investors find investment opportunities that can deliver superior returns on investment. Value creation is a key focus of PE firms which we passionately believe and continue to deliver exceptional returns.
Performance improvement by optimizing manufacturing footprint or accelerating the sales growth with a disciplined capital structure is a key metric we focus on while working on PE projects.
There are few key metrics that separates Arete private equity consulting services from other consulting companies in India or USA. Primary factor is quick turnaround times in delivering forward looking insights that can help decision makers execute a transaction rapidly. Our strategy consulting services across the world helps us generate uniquely curated insights in major sectors which our PE clients and institutional investors value immensely. Another uniqueness of our investment consulting for private equity firms stems from our ability to serve various ticket sizes – from small and middle markets to large scale markets, we serve it with deep knowledge and expertise that helps client confidently take insightful decisions. While major PE Consulting companies focus on large transactional sizes, we offer unparalleled advisory services in growth, mergers and acquisitions and capital markets to all our clients regardless of the deal size or revenues.
We have gained significant expertise in consulting small and medium size companies take better decisions when it comes to growth strategies or they are being acquired by large MNC for M&A across sectors like Artificial Intelligence, Life Sciences, Renewable Energy, FMCG, Robotics and other sectors.
In a similar manner, we have consulted global PE firms spot investment opportunities or acquire attractive businesses and grow them further with operational expertize to quickly create a tremendous enterprise value with a sound exit strategy plan.
From debt repayment plan using 3-5 year financial projections to exit values based on EV/EBITDA ratio and IRR, value creation is nearly ensured by maximizing revenue/growth potential.
As the post COVID-19 pandemic drags on, PE firms are looking at innovative ways in accelerating the value creation which dictates taking a disruptive route than the historical approaches. Finance, Liquidity and Operational plans may have taken a hit due to COVID-19 in their portfolio companies and given the short ownership times they hold on to a business for, it is more imperative to create a robust path forward to help grow the enterprise value of their investments while incorporating the economic changes post Covid era. We have helped few PE clients recently revisit their operational and growth strategies while finding disruptive ideas for investments and acquisitions.
PE CONSULTING SERVICES
STRATEGIC DUE DILIGENCE
Special Purpose Acquisition Companies (SPAC)
Though existent since early 1990’s but relatively unknown in USA private equity markets for quite some time, special purpose acquisition companies (SPAC) have been gaining significant traction on wall street in 2020 and continuing into 2021. Several Private Equity firms like Apollo Global Management, Pace Group and Oaktree Capital were early movers but in 2021, entrepreneurs, celebrities, executives, hedge funds, politicians etc. have all stepped in to create the so called “blank check” companies that offers alternative to traditional IPO route thus offering new possibilities for pe deal makers.
SPACs function as shell companies that have no operations of their own. They raise capital through IPO and use reverse merger process to acquire company from the IPO proceeds.
Covid 19 impact reduced the IPO launches significantly in 2020 while equity markets are getting stronger. SPACs enable General Partners & Managers to hold the asset for a longer time than the traditional PE Fund model. Structure of reverse merger model also means PE firms can get a larger economic stake with lesser upfront investments. Other factors like founder’s ownership control, exercisable warrants, single point access to better price negotiations are fueling more interest in SPAC model.
Companies seeking growth capital benefit from SPAC sales by allowing them to raise funds via private investment in public equity (PIPE).
In times of global uncertainties, it’s not uncommon for leaders and investors sometimes to lose out on the big picture. Economies will revive eventually, and every crisis presents an opportunity that manifests in some way or another. Planning and strategizing it ahead of time can accelerate the value enhancement of individual investments or portfolio companies.
We can assist our PE clients or institutional investors looking for SPAC eligible investments in India, Asia Pacific or North America. At Arete Ventures, we continue to offer innovative advisory solutions to financial firms and corporate businesses in re-assessing their strengths and finding better investment opportunities to thrive in the future.
Venture Capital Consulting
Having raised investment capital for tech startups in San Francisco bay area and further led those businesses into growth mode, Arete Ventures is deeply experienced and well connected in the venture capital and start up ecosystem for more than 15 years now.
Arete's VC consulting services enable corporate venture capital funds (CVC)and venture capital firms in USA, Europe & Asia take sound investment decisions leveraging our deep sector expertize and valuable experience consulting various startups, incubators and accelerators in India, United States, Europe & Asia Pacific. As one of the globally practicing venture capital consulting firms, we work across all stages ( pre-seed/angel, seed A and beyond) to provide unique technology and business perspectives.
M&A, Business Expansion & Growth strategies are prudent in nature when it comes to due diligence and decision making. Venture Capital investments differ largely from other investment modes because of a key attribute that it incorporates – Risk failure. Startup ideas are often unproven, rough concept of the product/ service which may or may not be ready and at times it often has a disruptive business model that may not have been implemented commercially before. All of these and few other factors add to the cumulative risks a VC Firm undertakes while being cognizant that not all startups or good ideas pan out successfully.
This is where Arete venture capital consulting experience comes into play. Having consulted in different geographies across the world in sectors like Artificial Intelligence (AI), FinTech, E-commerce, Life Sciences, Renewable Energy, FMCG and others, Arete’s venture capital consultants in India and California have gained indomitable experience with several technologies, SaaS/iPaaS business models, domestic and international growth as well as pricing strategies, operations, digital marketing, finance and overall business which ultimately helps us assess the risk profile practically and increase the odds of success – a metric that VC firms, GPs & LPs prefer to focus on.
Startup ideas are unproven sometimes – our due diligence strategies help create a risk profile which reduces the risk of an investment going sour.
Venture capitalists invest typically in unchartered territories, ideas that may potentially change how we live and think as a society, encourage technologies that can address real world problems and look into the future. Through our experience in raising funds and successfully running the businesses, what we have learnt is – its not just the ideas that help you succeed, it is the leadership, market potential and execution strategy that matters significantly in improving the odds of success. Startups possess innovative business ideas that can be a game changer but often fail in its execution strategies or commercial roadmap. Experiences with investments as well as scaling startups successfully in California, Europe, Singapore and other have equipped us with priceless insights that goes far beyond regular yardsticks which have often failed in yielding results or sometimes lead to “ we did not see this coming”.
Through our strategic due diligence and investment research expertize, we contribute in every practical yet unique way of how to spot ideas and minimize risks. Besides investment research and venture capital consulting, we also help the companies you invest in in multiple ways. Which could be by the way of creating growth strategies, competitive intelligence, aligning valuation objectives for next round, cost savings, financial models and keeping focus on key metrics that can take them to the next level.
Our venture capital consulting services focus on India as well as North American, Europe & APAC regions. We have top investment consultants and financial experts who have years of experience in their geographies and have delivered phenomenal returns to the venture capital, corporate venture funds and financial institutions.
Venture Capital investments offer startup companies an opportunity to make their dreams come true since it gives you few years bandwidth to succeed which other investment models may not. We evolve, innovate, and continue to serve our Silicon Valley investment thesis as well as disruptive growth philosophies to global investment/VC firms as well as startups across the world by merging boundaries and looking beyond horizons. Failures are an inevitable part as well as offer priceless learning in a venture capital world. We earnestly strive and have created a difference in improving the odds of success with well-crafted research strategies poised for competitive growth.
Business Startup Consultants in India
With 15+ years’ experience in raising capital and building multiple tech startups, we are one of the few startup consulting firms providing startup advisory services in India while continuing our global practices in USA, Europe, and APAC region.
We consult startups in developing a capital investment strategy which can include creating pitch decks, budgets, cash flow and other areas where efforts are needed to stay competitive and focused.
Besides capital, Startups during inception devote time, and efforts primarily towards creating a prototype, scaling the technology or product, and overcoming the challenges of growing the business. They are well aware that the odds are against them until they prove it otherwise. Becoming a Unicorn and going beyond it remains an endeavor for entrepreneurs helming the business. Selective focus of leaders in prioritizing their objectives towards building customer base and revenue generation, more often causes them to miss out on valuation growth and exit strategies.
Upon raising initial capital, Startups are well aware that the odds are against them until they prove it otherwise. Becoming a Unicorn and going beyond it remains an endeavor of every entrepreneur leading the startup.
As one of the most successful business startup consultants in India, Arete startup consulting team enables these dynamic startup entrepreneurs & leaders in charting the path forward for business valuations as well as creating an exit strategy. While entrepreneurs focus on commercializing the invention or scaling business, we parallelly assist them in maximizing the valuation growth and creating lucrative – exit strategies that create immense enterprise values for investors and founders both.
In Silicon Valley, through our professional experience in turning an idea into a profitable revenue generating business and consulting to extremely innovative startups globally, Arete startup consultants have witnessed a common pain point that aches many startups – unoptimized fiscal spending. Startups, in the process of acquiring customers and wanting to achieve many KPIs, end up spending more money than they should have; thus, learning things hard way. With our global operational and business expertise, we have assisted numerous startups in creating a well-planned financial model that achieves the objectives for the particular angel/ seed funding that they are vying for. We enable innovative business models maximizing growth and optimizing capital spending by leveraging upon our global resources, industry expertise in various sectors and proven strategies. These can vary from having core team members focusing on business model and while externally working with services platform for finance, accounting, and digital marketing strategies to name a few.
Arete startup advisors in India and USA dedicate our efforts exclusively on areas critical to your company’s success – thus filling the gaps and keeping you competitive. Capitalizing on our global operational and business expertise, numerous startups from various countries have benefited from our custom made financial models that assisted them in achieving their key objectives. Innovative business models emphasized on maximizing growth and optimize capital spending through our access to global markets and deep industry specific expertise in various sectors.
Arete Ventures believes in creating a lean team for our startup clients that spend capital wisely towards generating high returns, building a strong Intellectual Property (IP) portfolio, achieving financial goals and valuations aligning with investors’ expectations.
Our executive startup advisory services have benefitted international startups in Healthcare, Lifesciences, AI, FinTech, Renewable Sciences and Energy, E-commerce, Media & Hospitality, FMCG and other sectors from angel funding to Seed A, Seed B etc ultimately leading to exit strategy stage.