EXPERIENCED ENTREPRENEURS, INVESTORS, OPERATORS, AND DATA SCIENTISTS SUPPORTING TRANSFORMATIONAL TEAMS AND TECHNOLOGIES
Azafran Capital Partners
We are in the midst of the most rapid acceleration of technology the world has experienced, maybe ever. Social distancing has only accentuated trends that were already well underway such as machine learning and technology moving to the edge.
Azafran Capital Partners’ Fund II invests in companies utilizing disruptive voice, acoustics, and imagery technologies embedded with AL /ML in the Health/Wellness and IoT/Enterprise markets.
Specifically, we invest in teams that are solving really hard problems within really large markets in a disruptive way.
Headquartered in New York City, we are proven investors and entrepreneurs, focused on investing $2M to $8M in early, innovative teams disrupting large markets with deep technology, embedded in end-to-end solutions.
The Azafran Capital team is hands on, with deep domain expertise and great networks, with many years experience having worked together across multiple enterprises. We have built many companies large and small, we are operators, having been through the full lifecycle time and time again, from raising capital, to hiring and firing, and all aspects of management which we bring to bear every day for our portfolio companies.
Azafran is Spanish for “Saffron” which is known to be the most valuable spice in the world. At one time Saffron was more valuable than gold, used as currency and was viewed as possessing transformational value. Our name Azafran reminds us of our international scope and our mission to find founders who are developing transformational technology and seeking to build extraordinary companies.
As we choose to be experts instead of generalists, our strategy is already paying off with our incredible early investments (Fund I) in Yobe, Aspinity, Mohawk, TagSpace, and ArmorText (see Portfolio for more details) with a number of new investments on the horizon in transformational companies/technologies.
Why Azafran? Why Now?
Research + Experienced Lens = We See What Others Miss
RECOGNIZING A UNIQUE OPPORTUNITY
Azafran Capital Partners is at the nexus of 10 fundamental trends / opportunities:
- Investment gap $2M to $8M (see highlight to left)
- In 2019 our research team tracked $23B of transactions in our defined market, up from $9B in 2018 and $4B in 2017
- Longtime YPO and EO members and leaders with connections to over 40K companies globally with ~$10 Trillion in revenues
- Team with deep technology startup, operations, biz dev, investment experience and a passion for entrepreneurs
- No Need for Unicorns or IPOs for success as median hi-tech M&A exit EV is $175M, plus large Secondary Market demand
- Our fund thesis and team value to founders drives above average ownership interests at optimal valuations
- Less than 4 Deep Tech Funds Between $100-$200M AUM in U.S. Northeast out of total of 120 Deep Tech Funds globally
- Greater absolute returns and focus on DVPI vs. TVPI
- AI & ML Series A returns are +40%. Between 2X and 3X higher than tech sector (source: PitchBook)
- This is our second fund. Fund One proved our investment thesis and is performing +4X
Combining Experience and Timing with Deep Research
Our quantitative research team created a proprietary database with 3,000+ AI/ML companies worldwide broken into select categories, markets, themes, industries and metrics. There are already 625 companies that fit our initial investment criteria and enterprise value. We will invest in the best 20 to 25 companies in Fund II.
The content and distribution of Azafran’s INSIGHTS newsletter is focused to our LP, incubator, research, investment and partner ecosystem. As we look to build a two-way dialogue benefitting our collective efforts, each month we highlight important news and our approach to the emerging intersection of deep technology, end to end solutions and platforms driven by voice, acoustics and imagery.
The content and distribution of Azafran’s INSIGHTS newsletter is focused to our LP, incubator, research, investment and partner ecosystem. Below are highlights from the last two issues, please sign up to receive access to past and new issues as they are published.
Issue Fifteen focuses on the emerging technologies TinyML and Augmented AI, as they begin to take their place in the world of machine learning and deep science technology.Read more
Issue 15 - Why the Future of Machine Learning is Tiny, and the Future of AI is Augmented
Augmented AI and TinyML are fast becoming key elements of the ML and AI revolution - Issue Fifteen of INSIGHTS takes a deep dive into these exciting technologies through the lens of Azafran’s Investment ThesisRead more