The Arcanys Ventures formula: Investing in tech’s up-and-coming

A staggering 91% of startups fail to make it past the initial stages. But here’s the thing: the common pitfalls leading to startup failures — from cash flow issues (38%) to team disharmony (14%) — are preventable.?

So we're changing that narrative through Arcanys Ventures. Our goal is to assist startups at the seed and series A stage in overcoming common challenges by offering a unique tech-for-equity approach rather than financial investment.?

We act as long-term partners with a genuine commitment to operational support for each venture. Our hands-on approach helps startups bypass usual fundraising and hiring hurdles, allowing them to dedicate full attention to business development.

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How Arcanys Ventures supports tech startups

Finding the right support can be challenging for startups – 25% miss out on essential help, causing delays and operational budgets to balloon. Not to mention, it typically takes a lengthy six months just to find and hire the right talent.?

With Arcanys Ventures, startups gain access to a custom team (2 to 8 developers, QAs, and an architect), equivalent to an equity investment of USD 100k to USD 500k per round.

Our team of skilled experts and mentors leads the way alongside you, guiding your current team and optimizing capital while significantly accelerating the hiring process.?

We can integrate someone into the team in less than two weeks, compared to the average three to six months onshore, eliminating recruitment and salary expenses to enable focused and efficient growth.

As adaptable partners, we're prepared to scale our support or transition roles according to your evolving needs, ensuring our partnership adapts to your growth trajectory.?

Our venture capital approach emphasizes long-term success and meaningful impact, providing immediate, aligned support with the right talents from day one for each startup we partner with.

How we lay the groundwork

Our investment process is designed to be thorough, yet straightforward, ensuring a good fit between us and the companies we partner with. Here’s how it unfolds:

1. Initial meeting and evaluation. Here we assess the company's development stage, team composition, tech stack, and financial history. We also introduce Arcanys Ventures’ investment model to gauge the alignment between the company's goals and our investment approach.
2. Initial due diligence. We need potential partners to provide essential documents such as a pitch deck, valuation history, capitalization table, recent financials, and details of the current tech team. This information is reviewed and crucial for the next stage.
3. Technical screening. In this stage, our senior architect together with your CTO review your technology, roadmap, and team to ensure they meet our standards. This includes a comprehensive due diligence and code audit to identify any major issues and confirm our support capabilities.
4. In-depth due diligence. This involves a thorough review of the company’s data room, assessing all aspects critical to the investment decision.?
5. Roundup with Arcanys Ventures founders. My co-founder, Alan, and I will meet with the potential partner, most likely online. We will discuss the outcomes of the previous stages, address any outstanding issues, and explore potential collaboration opportunities.?
6. Final evaluation and meeting. Alan and I will address any remaining concerns and then decide to proceed with the investment.?

The entire journey from the initial meeting to the final decision takes, on average, only about two weeks, ensuring a swift and decisive pathway for potential partnerships.

Our partner success stories

Our portfolio encompasses more than 20 varied tech companies, featuring standouts such as:

Payment Logic

Payment Logic faced a common startup challenge: rapid growth with an inability to scale their team, despite processing $100 million annually. Arcanys Ventures stepped in and enhanced their system, added new features, and transitioned to an MVC architecture, while also boosting investment during COVID-19.

This partnership enabled Payment Logic to increase its transaction capacity from $100 million to $3 billion annually. The partnership allowed the company to focus on growth as Arcanys Ventures provided ongoing support in subsequent funding rounds.

Register Now

The Australian EventTech company Register Now faced rapid growth challenges, requiring a UI revamp and tech team expansion but was hindered by financial and talent shortages.

Arcanys Ventures stepped in, updating the company's outdated system with modern architecture and technologies, significantly enhancing the platform and increasing its value. This led to its acquisition by ASICS Ventures in 2022, after which the development team continued, albeit in a reduced capacity.

Medulla

Medulla, an Australian manufacturing SaaS company, initially struggled with aligning with their previous software development team and sought a reliable tech solution to enhance operations and products.

Arcanys Ventures resolved these issues by integrating with Medulla’s team, developing key features, and improving platform modules, which accelerated the launch of Medulla’s MVP and full product, enabling quicker customer onboarding.

Additionally, Arcanys Ventures enhanced the user experience by providing an on-demand UX expert to redesign Medulla's user interface, greatly improving product functionality.

Navigating the startup world is tough, with its mix of risks and rewards. Every startup has unique challenges, but having the right support can change the game.

At Arcanys Ventures, we look beyond just money; we offer the mentorship and technical help your startup needs to grow. Our approach is to partner in a way that values your unique trajectory and provides the specialized help suited to your challenges.

If you're considering investment or seeking tailored support, feel free to contact me directly at [email protected]. We can discuss how a partnership with Arcanys Ventures might streamline your startup experience and foster sustained growth.