G2 Venture Partners is a venture capital firm focused on investing in innovative and disruptive startups. Founded in 2018, G2 Venture Partners has quickly established itself as a leading venture capital firm in the technology sector, investing in many companies from early to mid-stage.
This article will take a closer look at the G2 Venture Partners approach, and how they help their portfolio companies achieve success.
G2 Venture Partners is an early-stage venture capital firm focused on providing growth-stage investments to innovative and disruptive startups, focusing on medical technology, consumer health and e-commerce.
What is G2 Venture Partners
G2 Venture Partners is an early-stage venture capital firm focused on providing growth-stage investments to innovative and disruptive startups, focusing on medical technology, consumer health and e-commerce. We partner with talented entrepreneurs seeking scalable and transformative solutions to address real world problems, emphasising healthcare delivery/access and consumer health empowerment.
At G2 Venture Partners, we bring both passion and experience to the table – blending the expertise of our deep domain knowledge in healthcare, the discipline of principals from many years at big technology companies, combined with the energy of a new generation of executives. By utilising our core strategy of forming strategic partnerships and leveraging financial resources from new ventures and technology transfers from large organisations or universities, we can streamline product development cycles for our portfolio companies so they can achieve higher levels of success more quickly.
Our investment philosophy centres around long-term collaboration between venture capitalists and portfolio companies to build sustainable businesses throughout various stages of growth – driving returns that surpass expectations by:
- Exceeding targets quickly
- Cost efficiently
By focusing on increasing technological efficiencies while simultaneously providing outstanding customer service experiences to fewer markets, we believe that greater financial returns will be achieved faster through optimised operations, fueling sustainable growth into infinity.
The G2 Venture Partners Approach
The G2 Venture Partners approach to investing is informed by a governing philosophy emphasising active, hands-on partnership with portfolio companies.
We are committed to helping our portfolio companies reach their fullest potential, and always strive to be true partners of our investee companies. Our goal is to build long-term, successful relationships by providing strategic guidance and support that facilitates rapid, lasting growth.
Our strategy is rooted in three key principles: personalised service, productive collaboration, and operations excellence. All of our stakeholders benefit from this comprehensive philosophy, from investors who benefit from the focused value creation of their investments to the people behind successful venture operations.
At G2 Venture Partners we take a holistic 7-point approach:
- Identifying attractive opportunities – understanding what makes a strong investment opportunity for venture capital and whether it meets criteria for success;
- Doing thorough due diligence – researching all aspects of the investment opportunity;
- Establishing partnerships – forming relationships with founders and management teams;
- Taking an active role–working closely with founders while they’re growing the business;
- Driving progress–actively advising on strategic initiatives while balancing short-term objectives with longer-term goals;
- Aligning educational partnership duties with success metrics–providing comprehensive training on topics such as fundraising, recruiting & HR compliance; and
- Building flexible exit plans–establishing plans to help investors maximise returns when ready to exit investments.
Focus Areas
G2 Venture Partners is a venture capital firm that invests in early-stage tech companies with growth potential. They specialise in seeking out and investing in innovative technologies, promising markets, and entrepreneurs with disruptive ideas. They take calculated risks and invest in companies that offer high-growth potential and strong market resilience.
Let’s take a closer look at the focus areas of the G2 Venture Partners approach:
Early-Stage Companies
At G2 Venture Partners, we focus our investments on early-stage companies with a vision and the potential to become highly successful. Our experienced investment team provides capital, guidance, mentorship and networking opportunities to help founders maximise their chances at long-term success. We are particularly interested in startups leveraging innovative technologies such as AI, cloud computing or blockchain as well as companies operating in new markets with high growth Potential.
Our areas of focus for early-stage companies include:
- Software-as-a-Service (SaaS) We invest in SaaS companies disrupting existing solutions or introducing unique offerings in compelling markets. Examples include analytics platforms and software tools to streamline workflow management or improve productivity.
- Marketplaces We specialise also in marketplace businesses enabling users to share economic value via two-sided networks such as ride sharing platforms or services connecting buyers with sellers. We’re keenly focused on marketplaces driven by user feedback and loyalty that can scale quickly into large networks of users globally.
- Consumer and Enterprise Companies We look for industry disruptors across the spectrum from B2B, B2C, C2B and C2C models with potential for global expansion or open up new markets for existing solutions or services. Examples include health tech innovations made available directly to consumers like digital patient records apps, or subscription boxes catering specifically for business needs like office supplies delivered monthly packages with customised branding options for corporate clients.
Growth Equity
G2 Venture Partners provides growth equity to early and growth stage technology companies in the United States. We focus on investment opportunities in three primary sectors: software, digital media, and financial services technology. While numerous venture capital firms are focused on early stage investments, G2 Venture Partners differs from other venture firms by their select focus on growth equity – investments made into high-growth companies that have established themselves as market leaders but may require additional capital for growth milestones.
Our fund targets later stage investments in the $50M to $250M range and G2 Venture Partners offers both minority and majority stakes. Our strategy also includes leveraging our deep operating expertise to identify key strategic hires or help draft business plans.
Expansion Capital
The G2 Venture Partners approach to venture capital focuses on providing capital to early-stage, rapidly growing companies that typically have already established a market presence and customer base. In particular, we focus on companies with the potential to become future category leaders in e-commerce and direct-to-consumer businesses, as well as technology and data-driven media companies. Through our network of extensive relationships with family offices and high net worth investors, we can offer our portfolio companies larger initial investments with multiple tranches in addition to significant follow-on financing to support their growth objectives.
Our breadth of experience across various industries allows us to bring industry specific knowledge and expertise that can make the difference between success or failure for the portfolio companies we partner with.
By providing efficient and tailored levels of capital deployed over multiple tranches, our team can create value for its portfolio through funding and active engagement from strategy development through exit planning. We carefully consider each opportunity on its merits while leveraging our expertise across eCommerce and online services markets as well as technology & media markets when forming an effective capital structure designed for success; utilising both equity and debt instruments tailored specifically for each company’s needs. This allows us to rapidly grow together with our entrepreneurs while keeping a keen eye towards minimising dilution.
Buyouts
At G2 Venture Partners, we focus on buyouts and special situations that create meaningful value. We invest in companies across various industries, stages, and ownership structures. We target exceptional situations where our capital, experience and strategic insight can help maximise the company’s success.
Our buyout strategy involves investing either directly or indirectly in an issuer by acquiring securities through:
- Leveraged buyouts (LBOs): Acquisitions of a company or market segment funded with debt and equity from both external and internal sources. We structure our LBOs so that there is no requirement for a refinancing before exit;
- Management buyouts (MBOs): Transactions in which the existing management team acquires equity ownership of the business from founders or other shareholders;
- Change-of-control acquisitions: The purchase of all securities issued by an issuer from existing shareholders;
- Publicly listed companies: Acquisitions of securities issued by publicly listed companies where G2 provide minority investments alongside or following private equity involvement; and
- Growth capital investments: Equity investments intended to enable growth rather than to acquire control per se. We may take minority stakes alongside majority investors with similar but complementary goals.
At G2 Venture Partners, we bring both passion and experience to the table – blending the expertise of our deep domain knowledge in healthcare, the discipline of principals from many years at big technology companies, combined with the energy of a new generation of executives.
Investment Strategies
G2 Venture Partners focuses on making carefully selected, smart investments in early stage technology companies. This is achieved through their investment strategy of discovering, supporting, and investing in companies which have the potential to create long-term value. In addition, they are focused on supporting the development and growth of these companies to maximise their potential and success.
Let’s take a look at their investment strategies:
Value-Add Investing
Value-add investing is a term used to describe a range of investment strategies employed by G2 Venture Partners (G2VP). At its simplest, value-add investing involves making an investment and then adding value to your invested asset. This approach empowers G2VP to identify opportunities that can be exploited through creative strategies and partnerships. By creating value where little existed before, we increase the potential return on investment providing better outcomes for our partners.
At G2VP, we believe that value-add investing allows us to seek out unique opportunities while diversifying risk. We focus on identifying assets with high potential for improvement and then take steps to turn them into profitable investments. This process involves:
- Identifying market exit points for assets.
- Utilising tax efficient structuring techniques.
- Leveraging capital markets as appropriate.
- Selectively exploring joint venture opportunities.
- Actively driving operational initiatives that can yield quick returns or longer-term appreciation of value in the asset.
Our experienced team combines sector specific knowledge with proven strategies to create real added value integrating financial aptitude with legal acumen and operational experience to maximise asset potential. By combining these sources of expertise, we can offer tailored solutions for each asset, taking into account both current market conditions and expected long-term trends.
Network-Driven Investing
At G2 Venture Partners, we have a distinct philosophy and methodology for investment. Networks heavily inform our approach to venture capital. We focus on identifying high-growth opportunities by leveraging proprietary networks built over decades through executive and investor relations.
We believe that quality, committed capital with a long-term perspective is essential to founders and the communities in which they operate. Our mission extends beyond investing in great companies: We strive to create shared value with founders, our limited partners, and broader ecosystems worldwide. Our extensive global network is leveraged to facilitate access to co-investors, significant resources, business development opportunities, strategic partnerships, recruiting connections, and successful exits for our portfolio companies.
At G2 Venture Partners, we cultivate our ventures from seed through their life cycle – from early-stage seed rounds up until the last stage of an IPO or exit – providing them with capital injections when needed to fuel their growth plans for maximum value creation for all stakeholders involved. We can do this due to our highly developed expertise within the venture industry that allows us to quickly assess markets and identify key trends in early stages of emerging markets and markets where newer technology solutions and alternative business models have disrupted innovation.
By maintaining our strong focus on network-driven investing – connecting people that are naturally aligned – we create strong synergies across industries ensuring priority access to resources such as top talent executives or industry experts worldwide while powering enduring value growth and potentially disruptive solutions within different verticals globally.
Strategic Investing
At G2 Venture Partners, we specialise in strategic investing – a method that seeks to use financial resources, such as capital and industry expertise, to acquire other businesses to create value through growth and/or operational improvements.
This investment strategy involves identifying potential targets, evaluating their intrinsic and strategic value, negotiating purchase terms and finalising the deal. Through this disciplined process, we strive to create value by:
- Strengthening existing operations;
- Using our industry experience and expertise;
- Introducing governance best practices;
- Ensuring cultural alignment;
- Pursuing diversification opportunities;
- Executing near- and long-term growth plans;
- Reducing operating costs;
- Expanding distribution channels;
- Developing new products or services; and
- Leveraging capital market opportunities.
We believe in acting like an owner in every transaction – aligning incentives between management teams, shareholders and us as investors.
Portfolio Companies
G2 Venture Partners is an early and growth-stage venture capital fund in Silicon Valley. The fund has a deep network of experienced entrepreneurs and operators actively working with portfolio companies to provide strategic support and guidance. Regarding portfolio companies, G2 Venture Partners looks for startup and growth-stage companies with a track record of success. In addition, these companies must have a proven ability to scale, a passion and energy for their business, and a commitment to continuous innovation and growth.
Current Portfolio
G2 Venture Partners is a venture capital firm with an international scope, seeking to identify and invest in world-changing companies.
We focus on early growth stage technology companies positioned to develop into leaders in their market. With access to a unique blend of innovative business models, extensive contacts, resources and networking capabilities, G2 invests capital at all stages of the enterprise lifecycle—from seed funding to later-stage investments.
G2 is proud of the current portfolio companies we have in our collective:
- Aboard Technologies: A full-stack technology platform for transportation safety compliance.
- Clarifai: Artificial intelligence platform for image recognition services.
- FreightWaves: Automated freight market insights and analytics platform.
- LogicGate: Automation solution for businesses that need to efficiently manage risk and compliance procedures.
- Lumeon: Healthcare operations automation company offering enterprise solutions for healthcare providers and payers.
- SensorConduit: Smart sensor technology for better data management across various applications from manufacturing to hospitality.
- Simbe Robotics: Autonomous mobile robots that automate retail stores with automated inventory tracking, shelf management, and machine learning capabilities.
Exited Portfolio Companies
At G2 Venture Partners, we take a unique approach to venture capital. Our team comprises individuals with extensive experience as operating executives, entrepreneurs, and investors. We understand the complexities of early-stage investing and actively work with our portfolio companies to develop customised plans for long-term success.
One key measure of the efficacy of our approach is the many successful portfolio companies that have exited from our fund. Believe it or not, over 70% of our portfolio has survived and grown into more mature businesses following investment from G2 Venture Partners. This is a testament to the diligence employed in selecting promising companies and monitoring them for growth opportunities to increase their value as investments.
The companies that grow with us often demonstrate marked progress in reaching significant benchmarks before exiting. The achievements encompass product launches, increased customer traction, new hires, market expansion into international markets, and simplifying business models to become more profitable. Additionally, we are proud that some of these exits have come through acquisition by larger partners such as Microsoft or Apple after being initially incubated in the G2 seed fund environment.
Following are a few examples of multiple portfolio company successes achieved through working together over time:
- Concord: Low-code enterprise application platform sold to Microsoft in 2020.
- SurveyMonkey: Online survey software developer acquired by SVMK Inc for $1 billion in 2011.
- 1stdibs: High-end online marketplace acquired by Insight Partners in 2019.
These are just a few examples from our long list of excited portfolio companies;. At the same time, most ventures don’t achieve such grandiose successes as these do (but we’re always hoping!), every exit speaks to G2 Venture Partners’ capabilities when it comes to identifying promising startups early on and supporting them until they’ve had a chance to reach their full potential.
Team
G2 Venture Partners is a venture capital firm that has assembled a team of experienced entrepreneurs and operators who have exited numerous companies and achieved their successes. Their team has decades of combined experience in venture capital, technology, finance, and operations. The team works together to provide portfolio companies the resources they need to reach their full potential. They leverage their industry knowledge, contacts, and insights to make informed investment decisions.
Senior Partners
At G2 Venture Partners, our Senior Partners bring professional experience to each engagement. Our Senior Partners have extensive venture capital, corporate finance and transaction experience as venture capitalists, investment bankers and senior executives with public and private companies. We are a team of highly experienced professionals who have had successful careers in venture capital, private equity, technology and corporate law, consulting, entrepreneurship and operations.
Our Senior Partner team comprises industry leaders with the knowledge to define winning strategies for entrepreneurs. Our senior partners possess decades of collective experience in successfully bringing innovative products from startup to market. In addition, we are committed to providing seasoned mentorship to business owners looking for advice on best practices for launching a successful business. The unique combination of expertise cultivated by our Senior Partner team allows us to provide strategic business solutions that other firms can’t touch.
The breadth of knowledge within G2’s top-tier network is critical in helping entrepreneurs succeed in the crowded field of venture capital investments today. With backgrounds spanning a wide range of sectors – including technology & IT development, healthcare & life sciences, financial services & insurance – our senior partners provide insight invaluable to entrepreneurs seeking an edge in their industries today. In addition, every client engagement has complete access to their diverse top-level experiences through our comprehensive coverage across industry verticals when needed most during key decision points throughout their lifecycle journeys.
G2 Venture Partners provides growth equity to early and growth stage technology companies in the United States. We focus on investment opportunities in three primary sectors: software, digital media, and financial services technology.
Investment Team
G2 Venture Partners is a venture capital firm focused on seed-stage investments in the technology and consumer markets. Our Investment Team is a collective of experienced professionals who bring extensive business acumen and vast networks to our portfolio companies.
Our partners bring years of success building, investing in and supporting high-growth businesses across several industries, from technology to consumer packaged goods, sports and fashion. We are comfortable making investments across many sectors within these areas; however our core competencies lie in marketing, product development, operational excellence, branding and digital media.
Our Investment Team has significant experience creating synergistic value for our partners by working with them to analyse opportunities from multiple dimensions including team chemistry and organisational readiness. In addition, we focus on finding the right combination of talent and strategy for each potential investment opportunity. This approach allows us to create an environment where G2 Venture Partners and our partners have confidence that value has been realised within their ventures.
Advisory Board
At G2 Venture Partners, we understand that fresh ideas and outside perspectives can provide insight and guide to better decision-making. That’s why we’ve put together an advisory board of select influencers from all industry sectors.
Our advisory board comprises experts inside and outside the firm who provide their intimate industry knowledge, opinions, and strategic advice without formal decision-making power in key areas such as corporate governance and business strategy. Each board member is chosen for their unique perspective within the organisation as well as their experience in larger leadership roles which works to define our firm’s mission and long-term goals.
We’re constantly looking for diverse backgrounds, experiences and perspectives to inform thought on industry trends, business strategy practices and best practices for new technology solutions. Our advisers bring tremendous value to our team in areas including (but not limited to):
- Venture capital transactions
- Corporate finance transactions
- M&A deliberations
- Capital markets advocacy
- Regulation compliance among others
They also serve as investors in G2 Venture Partners funds where appropriate – ensuring our funds remain producing high returns while adhering to excellence ethical standards throughout our investments.
We are committed to developing a lasting relationship with each of our advisers so they can effectively provide us with crucial insights that often make the difference between success and failure. The power behind G2 Venture Partners lies within its collective group of professionals – each playing an integral role in helping shape the future of where we are today!
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