Private Equity & Venture Capital
Venture Capital Consulting
Having raised investment capital for tech startups in San Francisco bay area and further leading them towards revenue & accelerated growth, Arete Ventures is deeply experienced and well connected in the venture capital and start up ecosystem for more than 15 years now.
Our VC consulting services enable General Partners (GP), Limited Partners (LP) at venture capital firms and corporate venture capital funds (CVC) in US, Europe & Asia take sound investment decisions that enable higher IRRs for their portfolio funds by leveraging our deep sector expertize. Regularly advising incubators, accelerators and seed to revenue stage startups constantly provides us with actionable data and proprietary insights in valuation, technology, business model, competitive landscape across major sectors in United States, Europe & Asia Pacific. As one of the globally practicing venture capital consulting firms, we have worked across all stages ( pre-seed/angel, seed A and beyond) to provide unique investment, 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. We have been associated with emerging sectors in Quantum Computing, Supercomputing, Artificial Intelligence (AI), FinTech, E-commerce, Life Sciences, Renewable Energy, Climate Tech, FMCG and other sectors which helped us thoroughly understand the success & failures of startups in this space. From valuations to boutique research into their technologies, key team members, business model and geographies they operate in, our venture capital consultants in India and California have gained phenomenal experience that can help investors spot bright startups with a higher probability of success. This strategic experience invariably helps us assess the risk profile practically and increase the odds of success by achieving internal rate of return (IRR) higher than the industry standard – a metric that VC firms, GPs & LPs prefer to focus on.
"Acquisitions are replacing IPOs as exit strategies, Returns on some if not many VC funds are lower than stock market in spite of higher risks. Our expertise solves this challenge and augments risk premium (Fund's IRR) through uniquely curated investment strategies "
"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, we have realized that its not just the ideas that help you succeed. It is the leadership, market potential and execution strategy that matters significantly in turning a startup into unicorn.
Startups possess innovative business ideas that can be a game changer but often fail in its execution strategies or commercial roadmap. Experience in scaling startups successfully in California, Europe, and other places 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”.
Our strategic due diligence and investment research contributes in practical yet unique way of spotting startups and minimize risks. Besides investment research and fund strategies, 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 North American, Europe & APAC regions. Our venture capital consultants are industry recognized global experts who have years of investment experience under their belt and have delivered superior 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 curating unique investment thesis as well as disruptive growth philosophies for investment firms globally 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.
Private Equity Consulting
Arete Ventures is one of the best consulting firms for private equity in small and middle market with buy side experience. For more than a decade, we have offered services to Private equity funds and investment banking firms in Silicon Valley & Wall Street.
From deal origination to deal closure and beyond, our private equity consultants in India & US provide full-fledged investment support across the full transaction cycle. Through confidential and multi-disciplinary due diligence approach, our PE practice offers identifying attractive investments, fund raising process, strategic due diligence, value creation, value growth and exit support.
Success in private equity industry is attributed to our proven strategy consulting experience involving business turnaround, performance improvement and corporate strategy in one of the most competitive North American & European region. Deep industry knowledge and domain expertise in traditional as well as emerging sectors helps private equity firms and institutional investors spot best investment opportunities that offer superior returns on investment. Enterprise value creation is a key focus of the 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 differentiates our private equity strategy consulting services from other private equity consulting firms globally. Primary factor is quick turnaround times in delivering forward looking insights that helps decision makers execute a transaction rapidly. Sector specific deals and industry knowledge of our private equity consultants across the world helps us generate uniquely curated insights which our PE clients and institutional investors value immensely. Another uniqueness of our transaction advisory to private equity firms stems from our exclusive focus on small and middle markets.
We have assisted globally reputed and most competitive private equity & investment management firms in traditional sectors like Oil & Gas, Biotech and IT to emerging sectors like Quantum Computing, Supercomputing, Artificial Intelligence, FinTech, Renewable Energy, Biofuels, Climate Tech & 3D printing. Our niche expertise combined with due diligence and transactional experience enables our privileged clients take informed 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 also consulted to small and medium business (SMB) owners take high quality decisions when it comes to growth strategies or if they are being acquired by large MNC or investment firms across major sectors. In a similar manner, we have consulted extremely reputed PE, investment management & alternative investment firms spot investment opportunities or businesses at an attractive valuation. Post deal acquisition, we have helped their investments grow further with our exclusively curated operational consulting strategies to create tremendous enterprise values in a short span of time
"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 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.