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Utilizing VCs’ Unused Pro-Rata Rights: How Alpha Partners Makes a Difference

Alpha Partners

Alpha Partners, founded and managed by Steve Brotman, is a global growth equity firm based in the US. Brotman is also a co-founder of Greenhill SAVP and Silicon Alley Venture Partners, with a portfolio of 30 companies from these two funds. The firm’s unique model focuses on co-investing with early-stage VCs to help them utilize their unused pro-rata rights.

In an interview with e27, Brotman discussed the company’s plans in Asia and opportunities and trends in the tech industry. He explained the motivation behind co-investing with early-stage VCs, emphasizing collaboration over competition. The firm’s strategy offers multiple benefits, including accessing high-potential, later-stage deals and benefiting the VC partners by providing them with the capital to maintain significant stakes in the companies they have nurtured early.

As Alpha Partners looks to Asia Pacific for future opportunities, they are specifically interested in trends such as the rise of digital economies, increasing investment in AI and machine learning, and the growth of sectors like e-commerce, fintech, health tech, and edutech. The firm plans to leverage its network of relationships with VCs and industry experts in the region and is open to discussing leveraging their model in the region with local partners.

While Brotman could not disclose details about a separate APAC fund, he mentioned the strategic advantage of creating such a fund and the need for thorough market analysis to align with their core investment philosophy. He also discussed the broader industry trends, challenges, and opportunities, highlighting the surge in demand for technology-driven solutions and the increased competition for funding among startups.

In terms of balancing a company’s strategic vision with financial considerations, Brotman emphasized the importance of aligning the strategic vision with practical, achievable financial goals. As an investor, he focuses on both the strategic and financial aspects of potential investments, ensuring that the company’s aspirations are supported by a realistic and achievable financial strategy.

Finally, in terms of risk management and strategic investment planning, Alpha Partners focuses on diversification and due diligence to mitigate the impact of market volatility. Their approach includes comprehensive analysis of potential investments, including a deep dive into their financial health and growth prospects.

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