• Information Technology
• Industrial Technology
• Established technology
• Established customer
• Track record of revenue
generation – ideally, at
$2 million over
prior 12 months
• Scalability of business
• Large addressable
• Strong management
• Target Investment Size
• Initial round funding
$4 - $8 million
• Up to $20 million over
life of investment
Arcapita Ventures, a $200 million dedicated investment fund launched
in October 2005, focuses on growth stage enterprises primarily
in the United States. From its offices in Atlanta, Arcapita typically
acts as the lead investor in companies operating in the (i) healthcare,
(ii) information technology and (iii) industrial technology sectors.
The investment team looks for businesses that have established
technologies and customer bases, and where its investment capital,
network and expertise can be applied to scale a proven business
model. Typically, the Fund invests between $4 and $8 million in
an initial round of funding, with the capability to invest up
to $20 million over the life of a portfolio company. Where appropriate,
we partner with other leading venture firms who can bring additional
capital, market reach and overall support to our portfolio companies.
In addition to providing growth capital, the Fund selectively
considers venture buyouts of companies with enterprise values
of less than $40 million.
Preferred Investment Types
Within our targeted sectors, we look for companies that have
at least $2 million in revenues over the prior twelve months.
We seek businesses that have proprietary technology, clear value
propositions, referenceable customers, robust margins and strong
management teams. We are attracted to markets that have clear
growth dynamics and strong profit opportunities. As the lead or
co-lead investor, we expect to have significant influence with
our portfolio companies as board members and strategic advisors.
Finally, we seek to work with management teams that are aligned
with our need to achieve liquidity with our portfolio companies
through an IPO or strategic sale within three to seven years after
our initial investment.
Arcapita Ventures is led by a seasoned investment team that has
collectively invested in more than 100 portfolio companies over
the past 25 years. Collectively, the team brings more than 60
years of experience in our sectors from a number of different
perspectives: venture investing, start-up operations, senior executive
management, business development, investment banking and corporate
governance. The team operates the Fund under four key principles:
(i) we will evaluate all investment opportunities with an aggressive,
yet highly-disciplined approach; (ii) we will work tirelessly
with our management teams to ensure the most effective utilization
of our investment capital; (iii) we recognize that long-term success
will only happen if we make our entrepreneurs, co-investors and
service providers successful as well; and (iv) we will treat all
our stakeholders with fairness and respect.
Portfolio Company Management
Active portfolio management is the hallmark of Arcapita Ventures.
Our investment team has a national and international network of
strategic partners, co-investors, senior managers and potential
customers. Where appropriate, we leverage the existing portfolio
companies and networks of the broader Arcapita network. While
we do not expect to be involved with the day-to-day operations
of our portfolio companies, we provide critical operational and
strategic support to our companies. These activities include making
introductions to strategic partners and potential customers, assisting
in the creation of properly aligned sales force compensation structures,
identifying and evaluating potential acquisition opportunities
and setting overall corporate strategic priorities.