All photography provided by Jared Chambers
We are investors, founders, mentors, and advisors, bringing an evolved and efficient approach to finding and capitalizing only the most promising early-stage businesses, and helping guide them to greater success.
At Act 5 Ventures We help position, shore up and de-risk companies, driving toward better outcomes, not merely better deal terms. In taking this approach, we position ourselves as beneficiary and advocate for both the investor and the entrepreneur - not taking the traditional role of "money squeezing the founders". Focusing on the outcome matters more in early-stage companies because the outcomes tend to be binary - success or failure - and improving the probability of success with active involvement produces more absolute return for both founders and investors.
A Closer Look
90-95% of startups fail, and among those that "succeed", only a fraction achieve the blowout, "hockey-stick" growth that makes the news. But among those that fail, perhaps 10-15% would have succeeded with proper non-capital support to de-risk the investment. It sounds simple, but we're talking about potentially doubling or tripling the overall success rate of startups, and greatly improving investment returns. By applying a rigorous approach to sourcing and selecting deals, and further maintaining that rigor with involvement and support throughout the life of the investment, our goal is to deliver better returns through intelligent curation and risk management across our portfolio.
Smart Syndication for Better Outcomes
Syndication in its simplest form is the aggregation of capital into a single legal entity by multiple investors, typically to raise sufficient capital for a large investment, and to share the risk and rewards of one or more investments made by that entity. But in this simplest and most common form, providing capital doesn't help in any other way to de-risk the investment. Recognizing that early stage investments tend to have "binary" outcomes - success or failure, most commonly the latter, Act 5 Ventures developed the SmartSyndicate(tm) model to incorporate active involvement with the target investment, by experienced business-builders, to help improve the probability of a successful outcome.
Learn more about how this benefits both the target company and the investors in our Act 5 SmartSyndicate Overview (PDF) and Act 5 Syndication FAQ (on request)