The venture capital and private equity sectors have been the traditional stronghold of a privileged few – mostly high-net-worth individuals and institutional investors whose allocations in these asset classes are increasing by the day. But a paradigm shift is brewing across the industry, led by the galvanizing call of companies such as APERION. In the aftermath of the Covid-19 pandemic and amidst talks of a global recession, these efforts to democratize this otherwise hard-to-access asset class has never been more vital. On one hand, it is providing a much broader investor base with better investment opportunities, while also offering a much-needed lifeline to start-ups that have the potential to “change the world”.
Specializing in early-stage ventures (ESVs), the Calgary-based private equity firm has a proven track record of helping start-ups that are building pioneering technologies and innovative solutions that are making a difference in people’s lives and their communities. In a testament to the company’s groundbreaking success, APERION’s Alpha Fund now represents over $1.6 billion in enterprise value and is still growing, delivering returns of over 240% to its investors and partners.
APERION has a strong focus on sourcing and incubating start-ups that develop technology solutions and business models in the software, industrials, and energy sectors, providing start-up capital, follow-on investment, and a hands-on approach through active involvement and management systems. The hand-holding, says Robert Purdy, chairman and CEO of APERION, is what sets the firm apart as a human-centric organization.
“We don't just string together a hundred companies under the Fund and wait for them to turn around. What we do is we go out and find six or seven really good start-up opportunities and serve as growth investors. And we try to be very involved and supportive every step of the way, understanding that these start-ups have great potential to change the world,” says Purdy.
“The success of a start-up doesn't just benefit its founders and investors; it extends to the broader community. In our 30 years of experience in the industry, we have developed a greater appreciation of how the strategic support we provide promising start-ups plays a vital role in creating new job opportunities in the communities where they operate, helping families and individuals secure a stable income.”
Building on the success of its Alpha Fund, Purdy says a second Fund was launched in 2021 with a mission to help companies that had struggled during the pandemic get back on their feet. One of the second Fund’s first ESVs, TRION Battery Technologies Inc., offers a blueprint of APERION’s investment strategy, says Purdy. TRION is an advanced lithium-ion battery materials company that has proprietary methodologies to increase energy density storage capacity in lithium-ion batteries. Its technology is protected by 14 patents and multiple trade secrets.
“We started with extensive due diligence and research, understanding where they're at, where their technology stood, what their capital structure was,” explains Purdy. “When we decided to come in, the shareholders were really very receptive of our well-researched plans and goals and TRION has been a continuing success story since then.”
Understanding the business model and the ins and outs of each start-up that receives funding from the firm is crucial to APERION’s business strategy. “We remain on top of these companies every day, especially in the early stages, making sure their business processes, their governance, their business development activities and all critical aspects of the company are aligned with our core values,” says Purdy.
For a long time venture capital and private equity had been associated with exclusive investment circles, denying small but innovative start-ups and entrepreneurs access to much-needed funding. APERION believes that democratizing these asset classes not only throws an important lifeline to struggling companies, but is essential in cultivating an inclusive business ecosystem that fuels economic growth.
“Our commitment to these companies extends beyond the capital,” says Purdy. “APERION builds strong and enduring partnerships with the start-ups we support, offering not only guidance and mentorship, but also helping cultivate a growth culture that positively impacts the communities they serve.”
APERION follows a “Create, Build, and Adapt” methodology where the firm and its strategic partners have active operational involvement in support of the companies that receive funding. Over the years, Purdy says the hands-on approach and proactive participation have been proven to help reduce investment risks as they give start-ups greater chances of success through easy access to a large network of local technical professionals, as well as support in terms of formal business planning for significant scaling, legal and financial matters, product and service positioning, and establishing relationships with initial customers.
The firm will remain committed to investing in ESVs that are developing transformational technologies and applications in software and hardware, innovative opportunities in industrial supply chain, logistics and global infrastructure development, transformational ideas, technologies in digital banking and fintech, and exponentially scalable and disruptive opportunities in the health and wellness sector.
There is no offer to sell, no solicitation of an offer to buy, and no recommendation of any security or any other product or service in this article. Moreover, nothing contained in this should be construed as a recommendation to buy, sell, or hold any investment or security, or to engage in any investment strategy or transaction. It is your responsibility to determine whether any investment, investment strategy, security, or related transaction is appropriate for you based on your investment objectives, financial circumstances, and risk tolerance. Consult your business advisor, attorney, or tax advisor regarding your specific business, legal, or tax situation.
Media contact:
Name: Robert Purdy
Email:[email protected]
