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What’s up, everyone? Today, we’re capturing some highlights from Lincoln Archibald and Nick Singleton’s interview: structuring your investment thesis. To listen to the whole podcast, visit “Funds that Won!”
Nick Singleton is VP at AIM…
“AIM Ventura Capital is a growth equity fund specializing in minority investments in revenue-generating companies. We are hands-on investors that provide growth capital, operational assistance, extensive accounting knowledge, exit strategy consulting, and more” (LinkedIn).
Let’s dive in!
About AIM’s Fund
Lincoln: So, AIM Ventura Captial was started in 2019, how many funds have launched since then?
Nick: We invested $30M with our first fund, with the investments mostly being in the Utah area. Then, we did a “follow-along” fund with another $17M. The $47M sum was invested across 11 companies – we have exited on 2 of them and 1 of them flopped.
Lincoln: Only 11 companies is somewhat concentrated, was that on purpose?
Nick: We didn’t have plans on how many companies we were going to invest in initially. We also kept the capital-raising period open-ended, taking opportunities as they came. Our first delpoyment was about $5M.
Investment Thesis
Lincoln: I want to hear more about your investment thesis…
Nick: To be completely honest, our first fund taught us a lot and helped shape our these. We started out focusing on proptech, which makes up about 50% of our portfolio. We’ve also ventured into fintech, SaaS, and consumer technology. We now focus on companies that generate $1 – 2M in revenue, have solid management teams, and a good subscription model.
Lincoln: From what I’ve observed in venture capital, fund managers typically invest their time with the winners and forget the struggling ones. How does AIM approach that ?
Nick: That’s typically true with other firms, but we’re different. I spend a lot of my time working with struggling companies because they have bouts of layoffs, need help with management transitions, or whatever.
Successful Habits
Lincoln: What are some habits you possess that have attributed to your success?
Nick: I’m not sure if this is a habit, but I’ve learned how to get along with people and work well with them. Over all aspects of business, it has helped me on the selling side, capital raising side, and now the buy side. Another habit that goes along with this is the ability to recognize others’ perspectives. It’s the fact of you thinking of someone else rather than yourself that makes it possible to connect with others.
Conclusion
That’s all we’re covering from the “Funds that Won” podcast interview, but click here to hear the rest about structuring your investment thesis!
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DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the authors.
