The Augmented Fund
A Supported Model for Venture Investing:
Capital Well Applied as “Rocket Fuel” for Takeoff & Exit
The Modern VC Model: Broken
Fewer companies are exiting specifically due to capital not being applied to productive business functions.
As a Consequence
The modern “Money Ball” venture model of spray-and-pray (too much capital) is broken. Entrepreneurs struggle to find expert guidance and focus toward company success and investor returns.
Why is the Model Broken?
Early-stage companies can’t afford the support talent needed to rapidly accelerate company executives to success.
The Consultant Conundrum: Top consulting firms are proven to add significant value to companies, but only large companies can afford them.
Access to the ideal expert consultants should not be a matter of luck.
(Early-Stage Companies + Proven Experts & Support) x Efficient Capital
= Materially Higher Returns.
Fixing the Problem is Worth it
Young businesses that receive seasoned national-level consulting support are two times more likely to become profitable.
…are 2.5x more likely to receive follow-on investment capital.
…and are 4x more likely to leverage resource networks outside their immediate region.
A fundamentally new model is needed. No more luck. No more ill prepared companies.
An Augmented Winning Model
Companies remain focused on what they do best, rather than trying to scale markets when they should be focused on product. Iterative learning and path to revenue are significantly shortened for the companies through dedicated experts… no more trial and error.
Demonstrated Benefits:
Greater Transparency
Greater transparency through dedicated experts AND fund managers, meaning more direct insight and easier oversight of activities.
Leverage
A target portfolio that leverages within itself.
Lower Risk
Lower risk profiles at the company level and fund level due to stable strategic control baked into companies.
Higher Success Ratios
Higher success ratios at the company level (as they make far fewer mistakes and capitalize on far bigger opportunities provided to them) and the portfolio level (as intra-fund partnerships become possible and strategic partners receive more efficient, ready to bolt on target companies).