Sageview Capital’s Andrew Korn discusses growth capital investing strategy and what sets his firm apart from others during the FreightWaves FreightTech Venture Summit.
Gaining support from investors can be one of the most difficult parts of starting a new business, yet it is crucial for entrepreneurs to survive and thrive.
Sageview Capital, based in Palo Alto, CA and Greenwich, CT, aims to support established businesses through an extended period of explosive growth.
FreightWaves founder and CEO Craig Fuller sat down with Sageview Capital partner Andrew Korn to discuss Sageview’s approach and what sets it apart from other firms.
Sageview got involved with Drivewyze this summer during the height of the COVID-19 pandemic.
Korn says Sageview took that step after looking at the long-term opportunities presented by Drivewyze. Drivewyze is a connected truck platform aimed at cutting costs and saving time by helping drivers legally bypass over 800 weigh stations in 47 states and provinces across North America.
The $60 million investment wasn’t made in haste, as COVID-19 had caused major uncertainty about the sustainability of buying software, but the upturn since the second quarter has been huge.
Korn says Sageview made a big bet, but then “a lot of our bets are big, all of our bets are big.”
Going big or going home is what drives Sageview.
“We think that it’s a really profitable way to invest over the long term because that means you really have conviction in those ideas and you can really help those companies succeed,” Korn said confidently.
What made them so sure of Drivewyze’s success?
Korn said the product has a clear purpose and a big return on investment. It has strong barriers to entry for competition, well integrated hardware and software, and a ton of room for growth with new product addition.
Going big means Sageview has to put trust in its choices, and timing plays a major role in where it invests.
Korn says one of the biggest drivers of investing in Drivewyze, despite the cyclical nature of the investment market, was the timing of the uptick in freight necessity.
“Moving freight is mission critical … . The old technology was at the point where it was not just wanted, but necessary to be replaced.”
As carriers are making those swaps to companies invested in technology, one of the most important points is that successful companies will be part of a tangible solution.
While the COVID-19 pandemic may have scared off some investors, Korn says Sageview is focused on long-term investment rather than short-term returns.
“What’s most important to us is looking down the road five to seven years.”
Korn finished out saying the company’s investment strategy is to play the long game by understanding who they are supporting and digging deep into why they deserve to be supported.
He encourages anyone seeking investors to ask themselves, “If I’m successful in five to 10 years, what can I be worth? What are my investors looking for as their end goal?”