Most of the businesses that match our partnership criteria are not VC or PE funded companies. When we meet management, their first priority is to solve the clear digital opportunity that will enable their vision, so they view access to digital capabilities as equal to, or more important than, access to capital
In our experience, non-technical management teams underestimate the true cost of enabling a software-driven strategy. Moreover, it is common for budgets to be limited due to the practicalities of running the business. It is rare that there is enough budget to afford a digital product program in full.
So, one of the most powerful aspects of the Digital Partner is the ability to finance the implementation of the program. At Castle, we have three models for financing a program. Since we do not have an investment fund, we normally offer to finance up to half of the program in exchange for an equity investment. In special cases, we can involve capital partners to fund the majority of the program. With larger businesses, where investment is not possible, we can implement a program in a fee-only relationship.
Because we have this flexible, investment-focused partnership model, we call ourselves a "Venture Services" firm.