Alacrity's 'Venture Capability' model gains popularity among tech-preneurs

Local software company, Alacrity, is seeing increased growth in the tech ventures space as the company's unique model is proving to show large-scale appeal to entrepreneurs serious about creating a sustainable business.

“The way I describe our model best is to use the words 'venture capability',” comments Robert Marshall, head of the Ventures division at Alacrity.

“We're not venture capitalists, we're not your typical incubator, and we definitely don't believe in taking the majority stake in the companies that we invest in. We do, however, invest significantly in ensuring the foundation is set for these projects to become successful businesses.”

Alacrity's Ventures division caters for primarily two categories of investments:

* Home-grown products that come out of Alacrity's software services and solutions division that have transpired as a result of a co-produced solution with a client, and where there is a joint interest in commercialising the project, or a product developed by one of the Alacrity staff that has further commercial potential; and

* The second category appeals to outside tech-preneurs, who have either developed software for a particular application that can be commercialised, or a group of entrepreneurs that need a technology partner to do the software development and assistance in the commercial aspects of the business.

The take-on criteria for projects Alacrity will consider are very clear: we speak to companies at the technology and application level where the requirement for software development is large, the people involved have to have domain knowledge specific to the industry niche within which this product is relevant, and the partners have to have credibility and knowledge of their market, including a known route to market (albeit undeveloped). There has to be a uniqueness in the product or service that's being offered. We're not interested in more of the same.

Each opportunity is assessed and taken through the process by a specialised review board that comprises a small team of highly experienced technology and venture specialists with international experience earned at the coalface.

Alacrity's model bears some resemblance to various other venture and incubation models available to entrepreneurs today, however, the strict take-on criteria and no-majority stake attitude are the clear differentiators. Alacrity is geared to provide limited capital, software development capabilities, mentoring, administration, business development and support function capabilities; but what's eventually agreed is all dependent on the stage the project or start-up is at, what is required and what investment model makes the most sense.

The company has been refining the model since 2005 and has a number of projects at different stages in the cycle, most notably companies like FleetDomain, DAMsense, CVM (Australia and SA), Tracer CQM, Perls, Wysetalk and CORE.

“We're intent on carving out a niche for ourselves in the ventures market,” concludes Marshall. “Our company was founded on this basis and we understand the intrinsic dynamics at play when you're starting out and you need the right advice and support at the right time.”