John DeLoche and William Nettles on How Proprietary AI Helps Source and Scale Software Businesses

SAN FRANCISCO, CA / ACCESSWIRE / January 13, 2023 / While ChatGPT looks to alter the technology landscape, private equity firms are employing advanced machine-learning platforms to enhance the art and science of PE deal sourcing and value creation. John DeLoche and William Nettles, Co-Founders and Managing Partners of Invictus Growth Partners, a leading San Francisco-based tech buyout and growth equity firm, cite that AI platforms enable more robust deal sourcing than humans alone.

Invictus, a leading investor in enterprise cloud software, cybersecurity, and fintech, recently closed its oversubscribed debut fund with commitments totaling $322 million to its core fund and related co-investment funds. The company’s proprietary machine learning platform, Deal Intelligence Assessment Neural Engine (“Diane”), played a key role in sourcing several of the firm’s investments. Diane’s industry-leading machine learning technology helps Invictus identify the most promising bootstrapped and capital-efficient software companies that are positioned for long-term growth. Post investment, the technology also is applied to Invictus portfolio company operations to make them more efficient.

John DeLoche states that Invictus has completed seven platform investments in its focus areas and targets companies with at least $10 million in annual recurring revenue that has been bootstrapped or have annual recurring revenue greater than equity capital raised. “Five of the seven completed investments were sourced from a discovery perspective with Diane,” DeLoche confirmed. “Diane operates with data sets at a scale, level of efficiency, and consistency that would not be possible for even large teams of humans. She accelerates our team’s ability to filter out the noise and find outstanding lower middle market buyout and growth equity investment opportunities.”

William Nettles, Co-founder and Managing Partner at Invictus, notes that Invictus brings this technology to help differentiate their portfolio companies as well. “Diane is a machine learning-powered outbound sales engine for B2B use cases. Since we invest in B2B businesses, every company we invest in can benefit from this technology in their own outbound sales motion,” states Nettles.

In addition to Diane and the data science team, John DeLoche reveals that portfolio companies also benefit from access to the Invictus Guild, composed of highly successful operating executives with years of experience at globally respected tech companies. Members of the Guild work across nine disciplines deemed critical for scaling tech firms, including sales, marketing, customer success, business development, corporate development, data science, human resources, product development, and finance.

As enterprise cloud software, cybersecurity, and fintech industries continue to evolve, AI in the form of machine learning is expected to play an increasingly important role in operational scaling. Firms like Invictus are on the leading edge of employing this technology for private equity value creation.

About Invictus Growth Partners

Invictus Growth Partners is a growth equity and buyout firm that invests in bootstrapped and capital-efficient, automation-enabled cloud software, cybersecurity, and fintech companies that seek capital and strategic resources to accelerate their growth.

CONTACT:

Andrew Mitchell
[email protected]

SOURCE: Invictus Growth Partners