Artemis Ventures

Questions

Question Topics

What is the venture investing landscape like today relative to the needs of startup companies and investors?

The venture investing environment remains rich with opportunity, and there is plenty of money to fund startups. VCs, however, are not as quick to plow cash into seed-stage companies as they once were. The institutional funds are now larger and placed with later-stage companies with higher valuations. VCs are therefore steering away from seed-stage financing.

Before receiving institutional funding, technology startups must now demonstrate much stronger business plans, product and customer acquisition strategies, strategic alliances and sustained revenue growth, among other "assets." Artemis Ventures has foreseen the need to both provide seed-stage financing and nurture young companies' growth

Why is there a need for a firm like Artemis Ventures?

Entrepreneurs offer a wealth of ideas about creating the "next great company", but they often lack the knowledge to turn their dreams into reality. We fill a crucial need to provide the solid experience that startups require to quickly grow their businesses and become fundable for larger investments. Our business-building expertise helps entrepreneurs develop sustainable, long-term business models and establish sound financing plans, as well as create strategic alliances, product/service strategies, and sales and distribution channels. Another value addition is helping startups develop an extended team by helping fill boards of directors and advisors and providing executive recruitment.

What is the difference between Artemis Ventures and traditional venture capital firms?

Artemis Ventures invests in and provides hands-on consulting for promising startups. Since seed-stage deals require more time than the average VC partner can allocate, venture capital firms are not equipped to work closely with entrepreneurs who need significant business-building guidance. Venture funds now prefer to offer larger amounts in later-stage companies, investing only in startups that meet their narrowing profile. By contrast, the Artemis Ventures provides seed stage venture investing that, combined with the firm's "high touch" strategic consulting and "heavy lifting", helps your company accelerate its growth.

Who are your clients? Do you focus on specific industries?

We invest in Infrastructure as defined by Robertson Stephens. The recent Virtual Bricks 2: Internet Infrastructure (May 2000) report names three broad layers of infrastructure: Access, Hosting, and Outsourced eCommerce Applications.

The Access layer includes Local Connectivity, Long-Haul Transport, and Network Services Providers.

The Hosting layer includes Shared or Dedicated Hosting, Complex Hosting Services Providers, and Application Infrastructure Providers.

The Outsourced eCommerce layer includes Application Service Providers, eCommerce (e.g. Content Delivery, Load Balancing, Community Management), and eMessaging (e.g. email, Collaboration, Voice Over IP, XML, Calendaring, Secure email).

See our portfolio and recent investments

How can startup companies benefit by using Artemis services?

We have over 40 years of experience helping young companies develop their business models, build infrastructure, thrive through intense growth periods, and sustain success. This approach is designed to produce rapid valuation increases of three to five times, as we groom startups for larger VC investments.

We provide initial seed capital of up to $3 million (across two financing rounds) per startup.This investment supplies critical funding and helps our clients focus on growing their enterprises. Artemis Ventures' partners maintain active board roles and lend their business expertise (up to 5 days a month) to each startup. This investment supplies critical funding and helps our clients focus on growing their enterprises. Artemis Ventures' partners maintain active board roles and lend their business expertise (up to 5 days a month) to each startup.

Partnering with industry leaders nationwide, Artemis Ventures also offers workshops to educate entrepreneurs about the key factors to accelerate growth - finance, management and marketing strategies. Our network of prominent industry experts provides the practical knowledge that startups need most to build a foundation for success.

How do investors benefit?

The Artemis Ventures Fund affords investors pre-VC exposure to early-stage entrepreneurial talent. By providing each startup with our hands-on guidance, we've created a solid foundation to help manage the risk in our venture fund. This combination creates a constant stream of high quality deals at stages substantially before institutional investors usually participate - and with a greater return on investment.

For VCs who participate at later-stage financing, Artemis Ventures offers enhanced investment opportunities - pre-screened companies that have matured to levels consistent with their guidelines.

What are your criteria for selecting startup companies you work with?

Artemis Ventures is focused on business-to-business enterprise and Internet software and services companies. This reflects our belief that these are the most lucrative market segments. We target only seed-stage companies with a promising technology solution and a solid, though often incomplete, management team. These startups' valuations generally range from $1 million to $4 million.

Artemis Ventures analyzes the depth of the entrepreneur's vision, which can initially be more important than a business plan. Our business-building expertise and collaborative approach helps startups develop into well-rounded companies that are prepared to scale and effectively compete in a constantly changing environment.

Are there any other firms like Artemis Ventures?

A number of firms, including VCs and angel investors, offer senior level expertise to help their portfolio companies grow. Others expose startups to a select group of potential investors. None, however, combine the heavy lifting and seed-stage financing that Artemis Ventures offers.