The syndicate group specializes in giving solution providers support in potentially cost-effective startups. TSG, the brainchild of the syndicate group along with venture investment veteran Chad Cardenas is following a strategy called ” Skin in the game”.
Skin in the game means to have incurred risk by being involved in achieving a goal. And TSG is helping partners get skin in the startup game. TSG creates values on several levels
- Start-ups gain access to the working cap required to grow their business.
- Solution providers get stakes technology companies that will potentially produce profits.
- Startups get benefits from investments from partners that have an interest in seeing the company succeed.
TSG does work with other investment firms to secure funding. But the last point mentioned above is pretty promising, making partners feel responsible for the success of the startup.
Startup tech companies despite having an edge on innovation struggle to secure the interest or engagement of solution providers and specifically those who can boost sales and reach the market cap. Solution providers tend to move towards vendors that have customer purchase consideration built-in.
TSG portfolio works by creating an investment pool that buys minority positions in vendors. This way, the risk is distributed between the entities and is proportionate accordingly.
TSG also has the support of industry stalwart advisors, including Mohit Aron, co-founder of Nutanix and founder of Cohesity, and Dan Warmenhoven, former chairman and CEO of NetApp. TSG has investments in a number of companies, including BigPanda, Bitglass, Cohesity, Harness, Trifacta, and VAST Data.
Cardenas, the former President, and chief innovation officer of solution provider Trace3 said “Aligning the interests of the channel with winning blue-chip technology companies is our recipe for huge success,” said Cardenas. “We’re not only incredibly selective about the caliber and quality of companies that we invite into our program but we also only seek those companies that we know we can strategically support.”