Haveli Investments is a relatively new venture capital firm that has been gaining attention in the startup investment space. Founded in 2021 by Brian Sheth, a former president of Vista Equity Partners, Haveli focuses on providing growth equity to leading technology companies. With Sheth’s experience and network in the tech sector, Haveli has already raised over $500 million in capital and made investments in software, data, gaming, marketing, and other digital businesses.
In this article, we will provide an overview of Haveli Investments, including its background, investment strategy, portfolio companies, culture, and future outlook. Key topics covered include Haveli’s competitive advantages, investment criteria, major deals, investor base, and impact on the VC landscape. By better understanding Haveli Investments, we can gain valuable insights into the world of venture capital and startup funding.
Haveli Investments’ Background and Team
Haveli Investments was founded in 2021 by Brian Sheth, a seasoned private equity investor who previously served as president of Vista Equity Partners. Sheth built his reputation at Vista where he led investments in numerous high-growth software companies.
With the launch of Haveli, Sheth aimed to continue investing in the best-in-class tech companies but with more of an early-stage focus compared to Vista. Haveli is based in Austin, Texas and plans to open additional offices in tech hubs like Silicon Valley and New York City.
Sheth has assembled an impressive team at Haveli, including several former executives and investors from top firms:
– Lucas Joppa, former Chief Environmental Officer at Microsoft
– Sumit Pande, former TMT Head at Qatar Investment Authority
– Ira Cohen, former Managing Director at Morgan Stanley
– Jason Mathews, former Partner at Goldman Sachs
This experienced team provides Haveli with valuable domain expertise in areas like software, cloud computing, AI/ML, consumer internet, and fintech.
Haveli’s Investment Strategy and Criteria
As a growth equity firm, Haveli Investments targets investments in more mature, late-stage private companies that have established product-market fit and are poised for rapid growth. Haveli’s sweet spot is investing $50 million to $250 million in companies with $30 million to $100 million in revenue.
Haveli’s investment criteria includes factors like:
– Proven management team
– Strong market positioning
– Potential to reach $500M+ in revenue
– Leverage Haveli’s operational expertise
The firm looks for opportunities where they can help accelerate growth by guiding effective sales, marketing and recruitment strategies. Haveli aims to invest in 15-20 companies per fund, deploying $250-500 million in each one.
Haveli focuses heavily on the software, data analytics, digital media, and consumer internet spaces. The firm is stage agnostic but prefers to invest after product-market fit when companies are scaling revenues.
Major Deals and Investments by Haveli
Since its launch in 2021, Haveli Investments has already been very active deploying capital into high-growth startups. Some of the major investments include:
– Omeda Studios: In June 2022, Haveli led a growth equity round in Omeda, a leading European video game studio. Omeda is known for developing story-rich action RPG titles.
– ClearBank: In March 2022, Haveli co-led the $223 million Series C round for ClearBank, a fintech company building native cloud core banking systems.
– HumanAPI: In January 2022, Haveli invested $20 million into HumanAPI, a startup focused on making health data more accessible.
-cybersecurity company SpyCloud: In November 2021, Haveli co-led SpyCloud’s $30 million Series B round.
These deals illustrate Haveli’s interests in gaming, fintech, healthtech and software. With its ability to cut large checks of $50 million+, Haveli can provide meaningful growth capital to late-stage startups looking to expand.
Investor Base and Funding
Shortly after its launch, Haveli Investments received a major endorsement when private equity giant Apollo Global Management announced it was investing $500 million into the firm. Apollo’s large commitment provided Haveli with a strong anchor investor to build its debut fund around.
This vote of confidence from an established player like Apollo signals that industry insiders view Haveli as an emerging firm to watch in the VC ecosystem. Haveli is targeting $1 billion+ for its first main fund as it looks to cement its reputation.
In addition to Apollo, Haveli’s investor base includes a mix of endowments, foundations, family offices and fund of funds. The startup-focused VC firm has been able to attract investment from players eager to access Haveli’s deal flow and tap into Sheth’s investing experience.
Outlook and Impact
With Brian Sheth’s strong track record in software investing and over $500 million raised already, Haveli Investment is poised to become a major player in late-stage tech deals. Haveli’s targeted focus on high-growth startups gives it an edge in competitive VC environment.
Looking ahead, Haveli is one of several new entrant firms like Prescriptive Capital, Nexa Equity, and HighPost Capital that are shaking up VC investing. With fresh capital and seasoned executives, these firms are positioning themselves as specialist investors in key sectors.
Overall, Haveli Investments represents the continued expansion and specialization of the venture capital landscape. Haveli’s success will depend on its ability to leverage its expertise and network to consistently invest in the top tech companies.
In summary, Haveli Investments is an emerging venture capital firm making a splash by backing leading tech startups with late-stage high-growth capital. Founded by private equity veteran Brian Sheth, Haveli has quickly raised over $500M, scored investments in hot startups like Omeda Studios, and gained backing from major investor Apollo Global Management. With its focus on proven software, data and internet companies ready to scale, combined with Sheth’s experience and network, Haveli is poised to fund the next generation of unicorns.