TechCXO provides a robust suite of Technology Investment Management Services for our Private Equity, Venture Capital, Venture Debt Lending, and Angel Investing partners and portfolio companies. The current global economic landscape has produced a climate of high potential returns for investors that are fueling the next wave of technological innovations; but the potential is countered by the challenges associated with the need to ensure that the right investments are being made, optimized, and revitalized in the midst of a dynamic and unpredictable global economy.
Additional detail about the advanced frameworks, methodologies, tools, and platforms can be found in the “Services and Solutions” tab.
- How can I more efficiently source prospective deals?
- How can I reduce my investment risk through expanded due diligence?
- Does the target deal have greater value than we are modeling?
- How can and should we strengthen the leadership team?
- Can the business benefit from industry benchmarking?
- How can we strengthen our strategy to maximize value creation?
- Can we more effectively manage revenue recognition?
- How can we revitalize an inferior performing investment?
- What options exist to recovery the investment(s)?
Investment Portfolio Development
There is no doubt that it is a “buyers market,” as the level of demand for technology investment exceeds the level of capital that is being invested. The resulting dynamic represents a wide funnel, where the range of prospective investment targets on even a regional basis is substantial, but such a scenario is positive and negative. TechCXO recognizes that investors would prefer to expand their reach on a national basis, which would materially improve the odds of sourcing the most viable investment target, but trying to do so is much easier said than done.
Venture Target Sourcing: TechCXO has developed the VC Webinar Series as a process-driven service platform to leverage the power of the Internet to maximize the efficiency by which investors can source prospective deals on a national basis. Beyond the expansion of reach and corresponding efficiencies, the VC Webinar Series addresses the need for sourcing effectiveness by offering a TechCXO managed candidate vetting and preparation process.
Selection Due Diligence: On the surface, many deals can appear to be attractive on several fronts, but it is the absence of sufficient due diligence during the portfolio development stage that can transform an investment with great potential into an asset that needs to be written off. TechCXO has developed a comprehensive and modularized suite of Due Diligence Services that spans all functional areas, but which is largely based on a practical assessment by experienced senior executives who are vetting the target as though it was their own investment.
Investment Portfolio Optimization
In most cases, and across all business stages, the basic components of the business model and operating platform have been formed, but it is the lack of optimization that limits the ability of a given business venture to reach it’s full potential. As experienced business leaders and managers, TechCXO Partners recognize that there are key strategic and operational “controls” that can and should be tuned to maximize value creation. As seen below, TechCXO has created a proven framework of services that be utilized to support the optimization of a given portfolio investment.
CXO Placement: Sourcing and securing the right leadership team represents a core need and challenge for the shareholders of any company, and the inability to maintain continuity of leadership during transitional phases can bring a company to it’s knees. TechCXO provides interim, fractional, and permanent CXO placement services, which is based on extensive experience by senior executives that have built world-class leadership teams across functional groups and during all business stages.
Strategy Refinement: As the operating plan is the engine for a company, the strategic plan is the steering wheel, and the two must continuously work together in harmony. Furthermore, the overall strategy must continually be driven by the marketplace demand, and yet the strategy is often governed by the evolution of the underlying technological innovations. TechCXO has developed a highly advanced Strategic Planning Framework that incorporates proven Strategy Decision Support models and platforms that can measure the market demand and align it with the required operating model and plan.
Operational Governance: In the current competitive landscape, a business venture must reach and maintain the highest levels of operational excellence across all functions at all times. The ability to measure operating performance and provide a framework to achieve operational superiority has never been greater, yet many businesses lack the tools, models, and experience required to do so. TechCXO has created an industry agnostic Operational Governance Model than spans all operating functions and which is intentionally integrated in to the TechCXO Strategic Planning Framework to provide ongoing harmony between strategy and operations.
Organizational Development: Even when a company has developed a superior business strategy and operating model, the central nervous system is the human capital. The sourcing of superior human capital (“Topgrading”) is critical, but the need to ensure that the hired resources are effectively positioned in the right organizational structure is even more critical. TechCXO Partners have extensive experience building, managing, and transforming organizations on a global basis.
Revenue Performance Management: Although survival and value creation is driven by revenue recognition, the ability to maximize value is governed by revenue performance over time. The revenue recognition management framework must be designed and measured in a multi-dimensional manner, which takes into consideration key performance measurements that can be evaluated against industry benchmarks. In response to this need, TechCXO has developed TechCheck, which allows businesses to measure their revenue generation performance against a peer group and then plot a revised strategy that produces immediate and measurable results.
Investment Portfolio Revitalization
Across a given portfolio of technology investments, there will inevitably be a range of performers, with all but the top 25% of performers often being pruned out over time. In many cases, the range of performers between the top 50 and 75 percentile have tremendous potential, which could be turned around with the right introduction of experience, guidance, and management. TechCXO Partners have a broad range of experience, which includes repositioning fledgling companies, creating alternative pathways forward, and completing turning around underperforming business.
Turnaround Management: When the need to turn around a business venture, the time-to-recovery is a critical factor, and nothing is more valuable than raw experience in the leaders that are developing the strategies and managing the corresponding events. TechCXO has developed a broad suite of services that are designed to optimize the performance of a business venture, which are then coupled with extensive turnaround experience to maximize the potential for a complete and rapid turnaround.
CXO Training Programs: In many cases, the underperforming company is being managed by solid leaders, yet they are experiencing challenges on a strategic or operational front. The potential for a turnaround exists, and the key levers to do so are in place, but a quick dose of professional guidance and experience is needed across several functional areas. TechCXO is continually developing highly focused and substantive training programs that span all functional areas and which are oriented around key strategic and operational aspects of a business.
M&A Transaction Management: When a technology investment could benefit from M&A transaction, the need to find the right company to merge with, acquire, or be acquired by is critical. Furthermore, the M&A transaction may appear valuable on paper, but unless the event can be managed effectively before, during, and after the transaction, the potential to recognize such value becomes questionable. TechCXO Partners have developed proven M&A methodologies that are based on a broad range of experience across all industry verticals.
David Buckel, Partner – Finance, Operations, Venture Capital/Private Equity (Florida)
Mike Casey, Partner – Finance & Operations (Atlanta)
Kent Elmer, Managing Partner – Finance & Operations (Atlanta)
Chris Thomajan, Managing Partner – Finance & Operations (Boston)
Jennifer Turnage, Managing Partner – Finance & Operations (Research Triangle Park)
Don Turner, Partner – Strategy, Operations & Technology (Atlanta)