Tercera’s Launch and Focus
Tercera is a venture capital fund that launched on January 28 and focuses specifically on funding cloud consulting startups. In fact, in opposition to most companies looking to invest, Tercera plans to specifically fund cloud consulting-based startups instead of more traditional technology and software-based cloud startups.
The idea for investing in consulting comes from the increased complexity of cloud-based solutions that modern businesses have to use. While the tools can obviously help with operations, many companies have failed to properly implement them without professional help.
When commenting on the idea behind Tercera and the company’s plans for their funding, CEO and Co-Founder Chris Barbin said, “There’s been a flurry of investment activity into professional services-based companies over the last couple of years, but there’s never been an investment firm that is exclusively focused on these types of businesses…The goal of the firm is to help create a kind of a powerhouse for those emerging [platforms], or a firm or two that actually has the collection of those [SaaS platforms] in their toolkit.”
Tercera’s Capital and Future Plans
In tandem with the company’s launch, Tercera announced it had amassed a $225 million fund, which it plans to begin parceling out to different businesses. The initial plan for investing this money will be to identify businesses and startups generating anywhere between $5 million and $20 million in revenue looking to expand even further. The company will then invest in parcels of $5 million and $20 million to these businesses with hopes that the added funding will help them scale up their own operations. The company has already begun the process of investing in their first identified consulting business; however, no further details are currently available.
Tercera itself is also looking to expand its own business as time goes by as well. As it currently stands, the company has very few employees but has plans to grow its workforce up to eight people by the midpoint of 2021. Given the size of their current fund along with the growing rate of cloud technology adoption, it looks like Tercera is well set up to see future success if they identify the correct consulting firms.
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.