OPPORTUNITY & OBJECTIVE
OPPORTUNITY & OBJECTIVE
Venture Capital as a Service (VCaaS) is a transformative way for government organizations, corporations, industry groups. institutional investors, and family offices to engage with the vibrant innovation ecosystem for financial and strategic returns.
Artesian's VCaaS model empowers clients to invest in innovative, high-growth startups without the need for a traditional in-house venture team. We collaborate with our clients to establish a bespoke mandate, and then handle all the complexities of venture capital - from sourcing and screening startups to conducting rigorous due diligence and providing ongoing portfolio management.
With VCaaS, we offer our clients a customizable investment approach that aligns with their specific goals, industry focus, stage of investment and appetite for innovation.
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To invest in venture capital, investors have traditionally:
1. Managed their own money:
This requires larger amounts of capital, access to qualified deal flow and expensive & sophisticated back office resources; or
2. Invested in funds:
This means minimal mandate control, limited co-investment opportunity, closed-end fund structure and no investment committee participation
But now there is another alternative:
3. Venture Capital as a Service (VCaaS):
This can be a fully outsourced service, or it can be a a platform providing organisations with the opportunity to complement existing, or build new, in-house VC capabilities.
VCaaS delivers financial & strategic (distributed R&D) return, as well as scale, context and focus, providing the client with a pre-screened & de-risked pipeline of qualified late stage startups for direct investment
Read: "Embracing VCaaS: A Strategic Solution for Corporate Innovation and Cultural Change"
"You can systematise innovation even if you can't completely predict it"
Eric Schmidt - Technical Advisor & Board Member Alphabet Inc.
VCaaS Overview
Collaborate
To access the financial and strategic returns of the innovation ecosystem a collaborative, scalable & systematised approach to early-stage investment is required
Scout
There are hundreds of startups working on every vertical-related innovation. Scouting for the optimal opportunities requires global resources & well-established networks
Scale
Due to the volume of startups to be assessed, scouting processes must be highly scalable to
filter the best opportunities from the firehose of possibilities.
Invest
We build & operate bespoke funds for clients, investing in startups delivering strong financial and strategic returns, and qualified growth-stage co-investment opportunities
Co-Invest
We will also work with clients to select, invest in and manage co-investment opportunities arising from the deal pipeline generated via other VC/PE funds in which they are an LP.
VCaaS Solving Clients Strategic Innovation Challenges
Governments & Supranationals
Sovereign Capabilities
& Risk Mitigation
VCaaS
Economic Development: To access the financial and strategic returns of the innovation ecosystem a collaborative, scalable & systematised approach to early-stage investment is required
Strategic Industry Growth: Develop key industries, such as AI & Robotics, Agrifood, Healthcare that are critical for national growth/security.
Public-Private Partnerships: Leverage private expertise and capital to achieve public policy goals.
Innovation & Technology Advancement: Invest in cutting-edge technologies, ensuring that the nation stays competitive on a global scale.
Risk Mitigation: Outsourcing VC activities reduces risks associated with direct government investment in startups & innovation projects.
Corporations & Industry Groups
Distributed R&D
+ M&A Pipeline
VCaaS
Innovation Pipeline: Gain early access to innovative startups and technologies that align with strategic goals.
Market Expansion: Invest in new markets or technologies without diverting significant internal resources.
Strategic Alliances: Form strategic partnerships with startups, fostering innovation within their industries.
Diversification of R&D: Diversify T&D efforts by investing in a broad portfolio of startups.
Financial Returns: Generate financial returns on their investments, complementing their core business activities.
Kickstarts, or Complements Existing, CVC: Increase pipeline, expand footprint & mitigate headline risk.
Universities & Research Institutes
Commercialization & Entrepreneurship
VCaaS
Commercialize Research: Commercialize innovations and IP, turning academic research into profitable ventures.
Bridge Funding Gap: Between research and market-ready products, helping projects reach the market faster.
Industry Collaboration: Facilitate partnerships with industry, align academic research / market needs and attract corporate partners.
Innovation Ecosystem Development: Foster local innovation ecosystem, attracting startups, investors, and talent.
Long-Term Financial Sustainability: Build evergreen, recyclable returns to fund future research & commercialization.
Institutional Investors
Bespoke Mandates & Co-Invest Opportunities
VCaaS
Manage Co-Investments: An outsourced solution to optimize co-investment opportunities generated by VC/PE portfolio firms.
Aggregate Emerging Managers: Alternative to Fund of Funds solution providing greater access/control of mandate.
Scalability: Allows institutional investors to scale their VC activities without the need for extensive in-house resources or expertise.
Alignment with Strategic Goals: Institutional investors can establish bespoke mandates to address particular portfolio requirements.
Family
Offices
Intergenerational Transfer & Values Alignment
VCaaS
Maintain Control: Invest in high-risk, high-reward venture capital opportunities., while maintaining control of mandate/ investments.
Access to Expertise & Deal Flow: Gain access to VC expertise and deal flow that they might not have in-house.
Alignment with Family Values: Bespoke mandates with investment control aligned with philanthropic goals or values, such as sustainability or social impact.
Intergenerational Transfer: VCaaS can involve younger family members in managing and growing the family’s assets, helping them learn about venture capital and entrepreneurship from a professional team until ready to manage independently.
VCaaS Process
Bespoke Services
Artesian delivers bespoke services dependent upon the
scope and requirements of the VCaaS client
Existing VCaaS Mandates
Artesian has a range of existing VCaaS mandates
across different regions and verticals
