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, industry groups, 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.

Footage: Source code ( is the version of software as it is originally written (i.e., typed into a computer) by a human in plain text

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

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

 

Eric Schmidt - Technical Advisor & Board Member Alphabet Inc.

VCaaS Overview

1326896-200.png

Collaborate

 

To access the financial and strategic returns of the innovation ecosystem a collaborative, scalable & systematised  approach to early-stage investment is required

2455087-200.png

Scout

There are hundreds of startups working on every vertical-related innovation. Scouting for the optimal opportunities requires global resources & well-established networks

2360956-200.png

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.

2407933-200_edited.png

Invest

We build & operate bespoke funds for clients, investing in  startups delivering strong financial and strategic returns, and qualified growth-stage co-investment opportunities

Picture 1.png

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 Process

VCaaS

Picture 1.png

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  startups. It is not uncommon for startups 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 

Picture 1.png
 

Existing VCaaS Mandates

Artesian has a range of existing VCaaS mandates

across different regions and verticals

Picture 1.png

Partner:  CEFC

Vertical:  Clean Energy

Overview: The CEFC is responsible for investing $10B in clean energy projects on behalf of the Australian Government

Product:  $26M early;-stage VC fund investing in

Australian clean energy and climate technology startups

Picture 1.png

Partner:  SA Govt.

Vertical:  Agnostic

Overview: Enabling innovative SA ventures to secure funding, accelerate growth, stimulate economic activity and job creation

Product:  $50M Series A/B VC fund investing in

helping build dynamic & innovative South Australian companies

TkytZu-i9rrK549X.jpg

Partner:  CCEP

Vertical:  Various

Overview: Coca Cola EuroPacific Partners ione of the world’s leading consumer goods companies

Product:  A bespoke early-stage VC fund focused and a pre-screened & de-risked M&A pipeline

Picture 1.png

Partner:  GRDC.

Vertical:  AgriFood

Overview: Investing in research, development & extension to create enduring profitability for Australian grain growers

Product:  $50M Early Stage VC fund investing in startups delivering innovation for the Australian grains industry

Picture 1.png

Partner:  GrainCorp

Vertical:  AgriFood

Overview:  Leading Australian agribusiness and processing company partnered with growers & producers for > 100 years

Product:  $30M VC fund focused on startups shaping the future of Australian agriculture & food production.

Picture 1.png

Partner:  InvoCare

Vertical:  Various

Overview:  Provides quality funeral, cemetery and related products and services to families at a critical time in their lives.

Product:  Bespoke scouting, due diligence, and investment in high growth ventures delivering innovation in the industry.

Request Information Regarding VCaaS

Request more information about VCaaS

Thanks for your interest!