We believe every company will become a technology company.
At a fundamental level, we believe every company in every sector of the economy will ultimately become a technology company. Andreessen famously said, 'Software Eats the World'.
While Arcspring is a technology-focused private equity firm built by technology operators, we don't invest in software companies. We invest in companies we think should be software companies.
Our investment thesis is to acquire old economy 'analog' businesses and transform them into 'digital' businesses — either a software business or a technology-enabled business.
We call this transformation an 'Analog-to-Digital' pivot, or 'A2D'.
Our focus for this thesis is the Services Economy which represents 2/3s of the US GDP and will be completely rewired by disruptive technology in the next decade.
Artificial Intelligence and its ability to replace labor-intensive business models in knowledge work will reconfigure service economy value chains. Additionally, the rise of digital platforms that connect two sides of a market will cause the displacement of traditional intermediaries. These will be the biggest drivers of change and form Arcspring’s biggest opportunity.
The Services Economy going Analog-to-Digital represents an epochal opportunity for those that know how to build digital businesses and is a high conviction investment thesis for Arcspring.
Arcspring's investment approach to micro-verticals focuses on fundamental rewiring a business through technology based on microtrends and broader macrotrends. (E.g., urbanization, spatial economics, data privacy, etc...)
Arcspring focuses on businesses that exhibit one or more of the following characteristics:
- Operating in a fragmented industry with a large addressable market
- Profitable with a strong customer base
- Significant untapped growth potential. Ripe for digital transformation
Arcspring provides transformational capital to support:
- Management Buyouts
- Growth Capital
- In the Range of
$15M to $50M