Case Study: Emergence Capital

A VC Cuts Through the Complexity

Valuative Speaks with Kevin Spain, General Partner, Emergence Capital

Kevin Spain, General Partner, Emergence Capital

Emergence Capital | Kevin Spain, General Partner

Tell us a bit about Emergence. What makes you unique?

Emergence focuses on investments in technology-enabled services companies. These businesses use technology internally to deliver a service-based value proposition to their customers. The technology-enabled services business model has become pervasive in a number of different markets including business applications (SaaS), digital media, mobile, and information services.

Emergence emphasizes investments in early and growth stage companies. We strive to play an active role on the boards of the companies we invest in—and feel that our focused approach to investing uniquely enables us to add value.

Name:

Kevin Spain

Company:

Emergence Capital

About Us:

Leading VC firm focused on early- and growth-stage technology-enabled services companies

Assets Under
Management:

$325M

Investments Include:

Salesforce.com (CRM), SuccessFactors (SFSF), HireRight (HIRE), Box.net, Yammer, Veeva, Insideview



How would you describe Valuative to other VCs?

Valuative is a fantastic tool for helping venture firms structure new investments and evaluate follow on options—particularly in situations with complex capital structures. Valuative replaces complicated, single-use spreadsheet-based models that are time consuming to build and inherently error-prone.

How has Valuative been useful to Emergence?

We use Valuative to both structure new investments and to evaluate follow-on investments. What makes Valuative useful to us is simply the fact that it’s so easy to model complex capital structures and understand their impact. The whole tool is killer!

Is there a deal you can recall where Valuative was a significant help?

One of our portfolio companies was raising a later-stage round and received several term sheets that had complex features. Evaluating the company’s many alternatives was challenging. We used Valuative to help us (and the company’s other investors) more easily understand the tradeoffs between the various term sheets.



What would you have done without Valuative?

Had we not had Valuative, we would have spent the time to model it in Excel. But it’s really helpful to have a solution like Valuative that allows us to very quickly iterate and see impact of new structures, which is far more painful to do in Excel.