Venture Capital As A Service 

Invest with confidence with a pre-screened and de-risked monthly pipeline of qualified startups and companies.

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 organizations 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.

Our Venture Capital-as-a-Service solution provides  you with a consistent pre-screened and de-risked pipeline of qualified startups and innovative companies of all stages for direct investment. From matching you with innovators to providing negotiation and integration support, we create tangible value throughout every step of the venture capital lifecycle.

OurApproach

Why Venture Capital-as-a-Service Helps

A few firms have developed innovative models such as venture-capital as-a-service (VCaaS) as a way to support corporate innovation. They help corporations manage their corporate venture capital funds and find the most innovative startups for investment, based on their interest areas. The firms also help facilitate startup relationships, developing business and technology collaboration. In many cases, corporations learn about new technology trends, new business models, and best practices from these startups–helping the corporations remain innovative. Startups in this model benefit from access to decision-makers, business guidance, and potentially a new revenue stream. It’s a win-win for both sides. 

How VCaaS Facilitates Sustained Innovation

Firms are providing VCaaS on a larger scale. This means partnering with top global corporations to support their innovation goals. Being successful means quickly identifying startups that fit within the strategic roadmap of their corporate partners. After the VC introduces corporations to top startups, they work together to create joint development and revenue opportunities. Partnerships like this are mutually beneficial, leading to corporate innovation and helping startups scale their business. 

How the Silicon Valley-based VCaaS Model Works

Working with the right firm, corporations benefit from an all-in-one solution for a competitive management fee–all for a fraction of the cost of typical R&D programs. The VC manages the company’s strategic funds by making strategic investments in emerging startups around the world. Key responsibilities–including deal sourcing, due diligence, negotiating deals with startups, and monitoring portfolio growth–are managed by the VC, which keeps the corporation informed with a high level of transparency. Using its expertise, the VC also manages and maintains theme-based incubators and accelerators; these can be the seeds of the next generation of innovation.

Outsourcing Corporate Innovation is Productive and Cost Effective

Outsourcing corporate innovation using VCaaS is a new way to address the ever-growing needs of corporate innovation. This approach relies on the expertise of professional investors instead of relying solely on internal resources. VC firms that operate using this model are coming up with creative and flexible strategies that allow any corporation to invest in innovation. Outsourcing investment expertise allows companies to run and grow their innovation programs, generating top tier results while keeping costs under control.

Venture Capital As A Service Details

Our Process

Our unique market position and cross-border transaction expertise enable us to deliver best-in-class deal flow and transaction support to MNCs seeking to invest in local startups. 

1. RESEARCH
Understand the key motives driving your investment needs and how they fit into your global strategy and cross-border innovation goals. Then conduct detailed market research, case referencing. and ecosystem mapping.

2. STRATEGY
Develop a comprehensive strategy (with clear actionable steps and resource allocation recommendations) that can be presented to and greenlit by your headquarters.

3. COLLATERAL
Develop a GCC pitch deck and other materials to create a compelling opportunity that resonates locally.

4. SCOUTING
Identify the most promising startups, conduct due diligence, shortlist the highest-ranking prospects, and compile a report for your consideration.

5. ENGAGEMENT
Conduct initial engagements to further qualify your shortlisted startups and set strong foundations for formal negotiations.

6. NEGOTIATIONS (OPTIONAL)
Negotiate (with or on your behalf) term sheets and help you navigate through any bureaucracy or regulatory hurdles you may encounter along the way.

7. INTEGRATION (OPTIONAL)
Integration negotiation, training courses, operational and communication framework, and monitoring to keep your ventures on track.

8. GOVERNANCE (OPTIONAL)
Ongoing strategic oversight and commercial support to help you steward your startups towards their goals.

Frequently Asked Questions

1.    What is the average length of a Venture Capital as a Service project?


  Between 12 to 36 months, based on an annual recurring contract.

2.    What are your primary innovation sources?

 Our innovation sources include but are not limited to universities, incubators, accelerators, investment firms,   research institutes, and trade organizations.

3.   What support can you provide after the project is complete?

 We can provide ad-hoc negotiation, integration, and governance solutions to support your ongoing   transactions and existing ventures. 

4.   Are expenses covered?

 No, any expenses (such as travel and accommodation) will be borne by you. Our contracts typically state that   all expenses must be pre-approved and itemized receipts must be provided before any reimbursements of   expenses can be made.

5.   Are there any third-party fees we will incur?

 Maybe, it depends on the project scope. Common third-party fees include software, legal, and administrative   fees that you will incur. Where such third-party fees occur, We will endeavor through its network of   strategic partners, to keep these costs to a minimum.

6.   What else do you need from us?

 We take a highly collaborative approach to every project we undertake. Throughout the project, we   expect and need you to dedicate the time, focus, and resources towards achieving the goals we set together.

Contact us today: info@michaelslage.com