ARKequity: FAQ's

Selecting the right private equity partner is an important process and best accomplished with transparency and lots of open, direct communication.

The following Q&A is provided to advance your familiarity with ARKequity and its principals; who we are, what we do and how we do it; this is a mystery-free zone. Information presented is not intended as a complete perspective, but it’s a good start and will help gauge your fit with our company / culture.

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Which business segments are we most interested in ?


What stage of development do we typically select ?


How much capital comprises a typical investment ?


How should you contact us - and what about introductions ?


What should your business plan include ?


How should you submit a business plan to ARKequity ?


How will ARKequity handle information in a business plan ?


How does the decision process work ?


How long does the decision process take ?


What is ARKequity's role after investment ?


Who are our investors – and do we invest our own capital ?


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Which business segments are we most interested in ?

We make equity investments in and provide bridge funding for companies generally deep in technology, finance and healthcare. Companies that are long on vision, and have been through at least an early or preliminary funding initiative are perfect matches for us. back to top

What stage of development do we typically select ?

Our approach is flexible. Entrepreneurs generally come to us to help build companies from early stages of evolution – to solve marketing challenges, mitigate risks and create opportunities for success. This includes first institutional rounds, true seed commitments, and series A or B rounds. We also fund into pre-existing structures and balance sheets, depending upon particular need and circumstance. At the time of funding, many of our clients have raised at least some preliminary funding from angel or other venture sources. They typically have principals who are heavily invested in the business and tied to outcome. A low burn rate is an advantage, clearly, and we generally do not bridge interim situations with accelerating loss of high volume liquidity. back to top

How much capital comprises a typical investment ?

When originating and leading a transaction, our initial investment is typically under $1.0 million USD, and we choose to partner with other venture capital firms when additional commitment is appropriate. In participation behind a lead principal, our investment strategy starts at $100,000 and increases from there. back to top

How should you contact us - and what about introductions ?

Mail, phone or email, are just fine; there is no need to come into the office unless you would like to, in which case you will find us easy to access and informal in atmosphere. Contact us anytime or follow the link for ‘Submission’ / ‘Business Plan’ to share your ideas. Certainly, it does help provide some reference and perspective if you have a CEO we've worked with before, perhaps an experienced attorney, accountant or banker by way of an introduction, but it’s not a prerequisite by any means. back to top

What should your business plan include ?

We don't require a business plan—an executive summary or a brief overview is often enough. (We've backed entrepreneurs who have come to us with everything from a 100-page business plan to a diagram on the back of a napkin.) But before any funding source ever becomes willing to commit precious capital, a great deal of thought and preparation needs to come first. A ‘business plan’ is the most efficient way to get all the issues out on the table, so you should expect to do one prior to the end of our analysis. However, don't spend weeks at the keyboard before you contact us. Often the questions we ask in a first encounter can help focus your business plan initiative. Whatever you do decide upon as ‘appropriate’, at minimum please include description that considers product review, referral information, market need, market size, and competitive landscape, selling strategy (channels) and market positioning and 3 year financial projections summary. Most importantly, we will want to know as much as possible about you and your management team; if you want us to provide capital, we need to know who we are relying upon to get the job done. back to top

How should you submit a business plan to ARKequity ?

You can send your business plan to us via e-mail, mail, or fax. Hand delivery works too; we are real people in a real office and we love spending time with real entrepreneurs who have passion for any particular outcome. back to top

How will ARKequity handle information in a business plan ?

We receive thousands of business plans on an almost continuous basis. Typically, it’s not our policy to sign a non-disclosure agreement before a business plan is submitted. ARKequity principals have been business leaders for over the last two decades, and we’ve maintained the highest standing within the business community through our ethical business standards that are without condition. We understand how important your idea is to you. We will respect the proprietary and confidential nature of your plan without exception. If some form of memorialization or added protection is appropriate, we are prepared to cooperate fully and completely at your instruction. Because of the amount of material we receive, we cannot in general return any submission that you might choose to provide; originals should stay on your hard drive, at the least, not ours. back to top

How does the decision process work ?

We operate as a single team, with every resource available to every one of our partner companies. We serve as facilitators to jump-start success, a role we approach with great care (it's your idea, after all) and enthusiasm. Return on investment matters (of course) but lasting return on relationships matters as well.

One of our principals will take responsibility for reviewing your company and spearheading our analysis of your business. If we’re serious about your opportunity, a "point person" will become your primary contact. All of the partners will then visit and get to know you and your team. We are a consensus-oriented environment, looking to each other for insight and issues which might otherwise have been missed. back to top

How long does the decision process take ?
The entire process to reach a decision and invest typically takes a couple of months, although we have been known to react much more quickly than that in specific instances. We view our investments as long-term commitments to a team and an idea. Because of that, we think it’s wise for all involved to get to know each other well, before committing to a partnership. We do have a Rapid Deployment Program, under which we can deploy up to $100,000 without some of the more rigorous features of the typical underwriting process. Request participation if this approach is advantageous for you. back to top

What is ARKequity's role after investment ?

ARKequity is a development business, so we do what it takes to build our companies into sustainable technologies and businesses. Our principals generally sit on every board of every transaction we make, and we support our investments by establishing terms and conditions, recruiting management, introducing other VCs and developing strategic alliances that foster the growth of a founder’s business plan. We help, advise, support, question and guide innovative entrepreneurs. ARKequity is long Alpha, strong Beta. back to top

Who are our investors – and do we invest our own capital ?

Bill Gates, Warren Buffett and Donald Trump – are not investors in our fund. Yet.

The investors in ARKequity funds are ARKequity principals. We put our money where our heart (and mind) are. We do not need, in most circumstances, to access outside or alternative funding sources in order to close or satisfy commitments. back to top

 

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