The buzz word that surrounds many tech & IT epicenters, is that of Venture Capital, the life blood to the young minds and new ideas. For many venture capital firms, its all about managing high risk through diversification across many startups, that likely will become another statistic or casualty of war, all for the long shot of finding the one firm that goes from rags to riches.
At ACG, we take a different approach to Venture Capital, one beyond strictly capital infusion, and gambling. At the heart of the venture capital endeavor and more importantly the start up enterprise is the proposed value and innovation by the start up.
Many startups like the Iridium Satellite phones sounded great on paper or from one view point, but quickly would fail other hypothetical outcomes or feasibilities, whether in market entry or demand, finance, technology, regulation, legal liabilities, and the endless other variables that can make or break a company and concept.
We typically start with younger companies that already have their feet on the ground, know which way is up, and are of some intrinsic financial merit. After that, we determine if we can help bring about the additional value-offerings in the teaming arrangement that will significantly increase the outcome of growth, sustainability, and success.
Typically, the capital infusion is not the most critical component. If it was the only required resource for success, that would mean the business model has limited or no risk, and just needs capitalization. But this is hardly the case in most venture capital enterprises.
Every project, development, or deal that ECG takes a role in, is a part of some Joint Venture, Teaming Arrangement, or Strategic Alliance.
The famous book by Thomas Merton describes that “No Man is an Island”. That could not be more true in business, although many aspire to build their own empire for themselves by themselves, we believe it’s far better to have a smaller stake in something great, than to have a larger stake in something small.
The key to this is through great leaders with exceptional values and respect for each other who find complimentary value working together and with others. Our leaders can envision the bigger picture of what can be accomplished when it is done together.
We review and assess opportunities from start-up companies to younger firms that seek additional value offerings through capital infusion, teaming, M&A, or other improvements that greatly improve the outcome, strength, and success of a developing group.