Presented by Pegasus Tech Ventures
There have by no means been extra sources of funding for startups than there are at the moment. The greatest entrepreneurs have many choices on the subject of financing their enterprise — whether or not it’s angel funding, crowdfunding, accelerator funding, or enterprise funding. Traditional enterprise capital corporations usually write the largest checks they usually have important sources to help startups of their networks. Still, conventional enterprise capital corporations might or might not have the data and experience to barter strategic company partnerships.
If startups are primarily centered on how they’ll scale their enterprise, then they’ll look to native and multinational companies for funding and partnership alternatives. Some of those companies resembling Intel or Google have their very own company enterprise capital funds for this objective. The good thing about this selection is that startups can often safe each partnership and the capital they’re on the lookout for.
However, there could also be a draw back if this relationship limits your flexibility to accomplice with different corporations. Some startups have a look at these partnerships as a possible exit technique sooner or later, whereas companies might have a look at minority investments as a take a look at for future majority possession stakes.
As a option to handle this new market dynamic for startups and companies, a brand new enterprise capital enterprise mannequin has emerged. This mannequin, often known as Venture Capital-as-a-Service (VCaaS), gives an optimum mixture of capital and enterprise worth to startups by means of company fund networks. Firms together with Touchdown Ventures and Pegasus Tech Ventures are offering startups with each versatile verify sizes and enterprise engagements with strategic company companions. Touchdown has partnered with companies resembling Aramark and 20th Century Fox. Pegasus has partnered with companies together with ASUS and SEGA.
One case examine which outlines the mutual advantages derived from the VCaaS mannequin is the partnership between Japan-based Innotech Corporation and San Francisco-based Osaro. Innotech is a publicly listed methods integrator with clients within the superior electronics manufacturing industries. Osaro is a fast-growing startup that’s utilizing synthetic intelligence reinforcement studying expertise for robotics functions in industrial environments. In 2015, Innotech invested in Osaro by means of a Pegasus Tech Ventures fund and started proof-of-concept testing for varied pick-and-place functions. Their partnership has expanded ever since, with Osaro opening an workplace in Japan and Innotech constructing a brand new enterprise division to help Osaro.
“Partnering with Innotech Corporation and Pegasus Tech Ventures has been critical for our international business expansion as well as for funding across multiple rounds of financing,” stated Derik Pridmore, CEO of Osaro. “We look forward to continuing our growth together and highly recommend that fellow entrepreneurs establish similar win-win relationships between investors and corporations.”
Another instance is the partnership between Japan-based CAC Holdings and Boston-based Affectiva. CAC Holdings is one other publicly traded methods integrator with clients within the monetary providers, expertise, and pharmaceutical industries. CAC Holdings additionally has a company fund with Pegasus Tech Ventures, by means of which they invested in Affectiva. Affectiva is a market chief within the improvement of emotion recognition synthetic intelligence applied sciences for shopper and automotive industries. CAC and Affectiva efficiently partnered to carry an emotional recognition answer to clients in Asia.
“Working with Pegasus enabled us to work with CAC and be introduced to a variety of their corporate partners throughout Asia,” stated Rana el Kaliouby, CEO of Affectiva. “We continue to work closely with Pegasus as we work to implement our solution in the automotive industry.”
These examples illustrate the potential for the VCaaS to allow win-win options for startups, companies, and enterprise capital corporations. As our world turns into extra linked than ever, it has change into simpler for startups to increase their companies into fast-growing markets overseas. Yet, in lots of circumstances they nonetheless want the correct accomplice so as to take action.
The VCaaS mannequin significantly lends itself nicely to startups who want to enter new markets in Asia resembling Japan, Indonesia, Vietnam, China, and India. Established companies in these markets make sturdy companions for startups to localize and implement their options. This mannequin can also be good for rising market startups who need to affiliate with a global enterprise capital agency for future funding and exit alternatives. We anticipate extra innovation within the close to future for revolutionary enterprise capital enterprise fashions resembling this.
There can also be an rising pattern in organizing occasions which are geared in the direction of connecting startups and company buyers. Startup World Cup is one in every of these occasions and is without doubt one of the world’s largest and richest startup competitions, held in 50+ regional areas throughout six continents. The regional competitions result in a grand finale in San Francisco every year the place the winner is awarded a $1,000,000 funding prize.
Previous winners have benefited from receiving the funding prize and the worldwide publicity that outcomes. The 2017 winner, for instance — Unifa from Japan — raised a $45 million subsequent financing and is planning to go public within the subsequent couple of years. There are additionally a number of examples of regional individuals that linked to the firms in attendance, resulting in partnerships and investments. Adding to the vitality and pleasure of those occasions are keynote addresses by tech luminaries resembling Steve Wozniak, Reid Hoffman, John Chambers, and Marc Randolph.
Corporations, startups, and enterprise capital buyers want one another. These new fashions of collaboration and outreach profit everybody within the innovation ecosystem.
Anis Uzzaman, Ph.D. is the CEO and General Partner of Pegasus Tech Ventures, overlooking general administration, investments, and operations. Located in Silicon Valley, Pegasus Tech Ventures has $1.5 Billion Dollars AUM and gives early stage to ultimate spherical funding. Anis has invested in over 170 startups within the United States, Japan, and Southeast Asia. Anis can also be the Chairman of Startup World Cup, a world startup pitch competitors with 50+ regional occasions throughout the 6 continents, main as much as $1,000,000 in funding prize.
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