Third500 is uniquely dedicated to serving the financing, strategic and liquidity objectives of Emerging Growth throughout the entire investment horizon, from “Inflection” to “Exit”. Over 15 years, our clients have completed more than 100 transactions representing in excess of $7 billion in investment and M&A value. The success of our clients has allowed us to establish the pre-eminent global platform serving the Emerging Growth economy. In everything we do, we differentiate in the most important ways: by the market we serve and the things we do for the company we keep.
Among the world’s largest and most consequential investment markets, the Emerging Growth segment comprises all companies with valuations between $50 and $500 million.
Over the past 10 years, the Emerging Growth segment has attracted $716 billion in investments while generating 27% median annualized returns. The segment now accounts for 67% of all VC investment and 56% of all exit events.
However, Emerging Growth is not a priority for traditional market participants. For strategic buyers and growth equity investors, the Emerging Growth segment is considered “too early.” For NASDAQ investors, Emerging Growth is “too small.” For VCs, it is “too late.” For investment banks, the “fees aren’t big enough.”
Third500 understands that Emerging Growth is the heart of global innovation, the center of human achievement, economic advancement, job creation, wealth expansion, environmental action and social progress. We also understand that the needs of the Emerging Growth economy are unique. Distinct. Complex.
We are inspired… by the impact that we might have on the world -- in serving the future of the world. We are energized… by the opportunity to fulfill a purpose bigger than our own. We are invigorated… by the promise of building T.H.E. pre-eminent investment platform for the fastest growing, most dynamic companies.
Because of all that, we built Third500.
In the last 5 years, $514 billion has been invested into Emerging Growth companies through (15,613) transactions. In the next 5 years, those investments will be expected to generate more than $1.5 trillion in returns.
Only 7.6% of Emerging Growth companies successfully complete an M&A exit? (1 in 13 ratio)
Only 4.3% successfully complete an IPO? (1 in 23 ratio)
100% of investment returns are generated by only 7% of Emerging Growth companies?
94.8% of “Exits” from all VC investment occurs at valuations below $500 million
Average “Exit” values since 2017 of $247 million suggest that the pace of capital velocity must increase by 600% by 2026 in order to equal 20-year historical financial performance.
Third500 understands that generating superior investment results in the Emerging Growth economy requires comprehensive solutions offered throughout the investment horizon. From revolutionary technology to global capital markets capabilities and the most informed, experienced and independent strategic advice.
What our clients say about us.
Every year in the Emerging Growth economy, 44% of the market completes a financing, as more than (8,000) companies seek to raise in excess of $70 billion through more than (3,500) transactions.
Third500 believes that our indelible contribution to the Emerging Growth economy will be in serving the financial objectives of investors and the strategic priorities of their portfolio companies. This is “Job One”! To that end, our global capabilities serve the unique needs of Emerging Growth companies, from exclusive investment intelligence to extensive data integration, proprietary transaction management, specialized capital markets and strategic solutions.
Our results (and those of our clients…) speak for themselves.
At Third500, we measure our success by the success of our clients. In doing so, we hold ourselves to the highest standard in the industry. For most investment banks, it would be enough to complete a transaction, collect a fee and publish an announcement. Never mind whether the Company proved to be successful… Or whether the investors made money.
We understand that our next deal will only be as successful as the last one. In being accountable -- at the same time -- to the interests of BOTH investors AND Issuers, we are able to:
We welcome the opportunity to be judged on our performance.
Since 2018, Third500 clients have raised $1.2 billion in total investment capital. These investments have yielded extraordinary results for founders, management, employees, directors and investors:
330% return to founders and legacy shareholders
$3.2 billion in total investment gains
$1.75 million in realized “cash-on-cash” returns
Weighted IRR of 45%
Multiple on invested capital (“MOIC”) of 2.7x
$1.6 billion benchmarked, unrealized value
Over the course of its investment horizon, an average Emerging Growth company will raise $92.4 million in increments of $16.5 every 19 months, culminating in an exit after 8.8 years at a valuation of $247 million while generating multiple on investment of 2.7x and IRR of 11.6%.
In the process, those Emerging Growth companies will attract a syndicate of 3.7 institutional investors and $42.5 million (46%) of total capitalization from non-VC sources. Upon a successful exit, 57% of total capitalization will have been sourced from a regional or strategic partner relevant to the Emerging Growth company.
Third500 is positioned in the most important markets throughout the world to serve the fastest growing, most dynamic companies throughout the entire investment horizon.
Learn more about job opportunities and internships for students and experienced professionals at Third500. We are on a constant lookout for the brightest and most qualified people to join our offices in Chicago, and Bangkok.