ARTESIAN'S REVOLUTIONARY VENTURE CAPITAL AS A SERVICE (VCaaS) PLATFORM SERVICES THE INCREASINGLY COMPLEX NEEDS OF ORGANISATIONS DEALING WITH THE FINANCIAL AND 

STRATEGIC CHALLENGES and OPPORTUNITIES PRESENTED BY THOUSANDS OF POTENTIALLY DISRUPTIVE STARTUPS.

  

 

ARTESIAN's VCaaS PLATFORM PROVIDES CORPORATIONS, GOVERNMENT ORGANISATIONS AND FAMILY OFFICES ACCESS TO TRANSFORMATIONAL STARTUPS, DELIVERING DISTRIBUTED RESEARCH AND DEVELOPMENT, 

FINANCIAL AND STRATEGIC RETURNS, COLLABORATIVE PARTNERSHIPs, CO-INVESTMENT OPPORTUNITIES AND A PRE-SCREENED AND DE-RISKED M&A PIPELINE.

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VCaaS

Groups including corporations, government organizations and family offices are increasingly interested in investing in private markets. 

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 an alternative option:

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

"You can systematise innovation even if you can't completely predict it"

 

Eric Schmidt - Technical Advisor & Board Member Alphabet Inc.

COLLABORATE

 

To access distributed R&D from the broad startup ecosystem a collaborative & scalable 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 & 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.

PIPELINE

 

We build & operate bespoke funds investing in pipelines of early-stage startups delivering distributed R&D, financial returns and qualified later-stage co-investment opportunities

VCaaS

VCaaS PROCESS

ISSUES, CHALLENGES & SOLUTIONS

 

Democratization of Startups & Innovation

With lower cost of starting up technology innovation can occur anywhere

 

There are tens of thousands of startups working on any particular vertical’s related innovation globally

 

Global scouting requires global resources and networks

Challenge

Difficulty in identifying & accessing startups relevant to specific mandate requirements

Solution

An institutional deal sourcing & filtering process leveraging extensive global startup & innovation networks

Early Stage VC Provides Critical Distributed R&D

The driver for investment in most asset classes, including late stage VC, is a strong risk-adjusted return

 

Uniquely, a diversified portfolio of early stage startups delivers both a  strong risk-adjusted return and a strategic return - distributed R&D

Challenge

How does an organization understand competitive risks & opportunities of the opaque startup sector

Solution

Gaining access to the global innovation network which can deliver strategic insights & analysis regarding emerging technology & industry trends

Asymmetrical Skew of VC Investment Risk

90% of returns are generated by the top 10% of startups

 

Early stage VC investing requires a scalable strategy that avoids uninvestable startups and invests broadly in the best 10%

 

Employ an option strategy - time is the best due diligence for early stage startups

Challenge

Different techniques and strategies are required for early, versus late stage, vc investment

Solution

A scalable, process driven early stage VC strategy employing an option approach  to mitigate early stage VC investment risks

Prohibitive Resource Requirement

Early stage  VC requires small amounts of investment capital but large amounts of resources

 

Global reach and regional specialization and contacts are critical in gaining full visibility of emerging technology trends and themes

Challenge

How does an organization tackle scaling issues required to understand global startup activity

Solution

An outsourced platform delivering aggregated cost benefits and a pre-screened & de-risked pipeline for later stage direct investment

Late Stage Co-investment and M&A Pipeline

Organizations are generally more willing to invest in a startup once it has demonstrable performance

 

A qualified early stage pipeline provides access to deals as well as comparative data to make better informed later stage investment decisions

Challenge

How does an organization make better informed, later stage, investment and M&A decisions 

Solution

Via a diversified portfolio of early stage startups organizations can mitigate internal & external obstacles to direct investment and M&A activity

Headline, Moral Hazard & Signalling Risk Mitigation

Incumbent organizations face a number of acute reputational risks when dealing with emerging startups. It is not uncommon for early stage ventures to: 

  • blame incumbents for failures/not reinvesting

  • act in aggressive or unethical ways which may reflect badly on the incumbent

Challenge

How does an organization mitigate the risks associated with minority stakes in a range of early stage ventures

Solution

Employ an arms-length, outsourced investment vehicle that operates with relative autonomy, and perhaps a separate brand, to the organization

BESPOKE SERVICES

 

Artesian delivers bespoke services dependent upon the

scope and requirements of the VCaaS client 

 

EXISTING VCaaS MANDATES

Artesian has a range of exiting VCaaS mandates across different regions and verticals

Terms and Conditions

 

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