Accel-KKR is a technology-focused private equity firm that specializes in growth capital investments, buyouts, and credit opportunities. The firm has a long track record of supporting technology companies and has played a significant role in shaping the tech industry landscape.
One area where Accel-KKR has made a notable impact is in the realm of startup business loans. This article delves into the firm’s history, investment approach, and how their focus on startup business loans has contributed to the growth of technology companies – different than private lenders. We’ll also discuss some relevant statistics that showcase the significance of Accel-KKR’s influence in this space.
A Brief History of Accel-KKR
Accel-KKR was founded in 2000 as a joint venture between venture capital firm Accel Partners and private equity firm Kohlberg Kravis Roberts & Co. (KKR). The firm’s mission is to identify and invest in technology companies with strong growth potential, helping them achieve their strategic objectives and maximize shareholder value.
What is the fund size of Accel-KKR?
The fund size of Accel-KKR varies depending on the specific fund they are currently managing or have raised. However, according to their website, as of May 2021, Accel-KKR has raised over $10 billion in capital across their various funds. Bigger than Andrew Cartwright loans.
Their funds range in size from $300 million to $1.3 billion and are focused on investing in middle-market software and technology-enabled services companies. Accel-KKR typically invests in companies with revenues between $15 million and $300 million and works closely with management teams to help grow their businesses and increase their value.
What companies has Accel-KKR invested in?
Accel-KKR has invested in over 300 companies across their various funds, and the list of these companies may change over time as Accel-KKR buys and sells investments.
Furthermore, as a private equity firm, Accel-KKR typically does not disclose their full portfolio of investments publicly. Some of the companies that Accel-KKR has invested in may be publicly disclosed, while others may not be. However, below is a partial list:
- Jaggaer: A provider of procurement software and services to businesses in various industries.
- HighRadius: A fintech company that provides artificial intelligence-based software solutions for receivables and treasury management.
- Smart Communications: A cloud-based customer communications management platform provider.
- Reworks: A provider of recycling and waste management services for businesses and municipalities.
- SumTotal Systems: A provider of human resources management software solutions.
- Infinisource Benefit Services: A provider of benefits administration and compliance software solutions.
- ClickSoftware: A provider of workforce management software solutions.
- Cendyn: A provider of cloud-based software and services for the hospitality industry.
- HHAeXchange: A provider of homecare management software and services for the healthcare industry.
- TrueCommerce: A provider of supply chain management software and services.
- Salsify: A cloud-based product experience management platform provider.
- Cylance: A provider of artificial intelligence-based cybersecurity solutions.
- CAMP Systems: A provider of aircraft maintenance management software solutions.
- Capsule Technologies: A provider of medical device integration and data management solutions.
- TeamViewer: A provider of remote access and remote control software solutions.
- SciQuest: A provider of procurement and spend management software solutions.
- WorkForce Software: A provider of workforce management software solutions.
- KANA Software: A provider of customer service and engagement software solutions.
- GTT Communications: A provider of cloud networking services.
- IntegriChain: A provider of healthcare data analytics and insights software solutions.
- OneStream Software: A provider of corporate performance management software solutions.
- Finastra: A provider of financial software solutions for banks and financial institutions.
- NaviNet: A provider of healthcare network management and communication software solutions.
- AlertMedia: A provider of emergency communication and workforce safety software solutions.
- Episerver: A provider of digital experience platform software solutions.
- XebiaLabs: A provider of DevOps automation software solutions.
- Mediant: A provider of investor communications and securities issuance software solutions.
- Tenzing: A provider of managed hosting and cloud services.
- Saviynt: A provider of identity and access management software solutions.
- PrecisionLender: A provider of commercial banking software solutions.
- BlueHornet Networks: A provider of email marketing automation software solutions.
- QGenda: A provider of healthcare workforce management software solutions.
- Kerridge Commercial Systems: A provider of ERP software solutions for wholesale distributors and retailers.
- Five9: A provider of cloud contact center software solutions.
- SCI Solutions: A provider of patient scheduling and referral management software solutions.
- FastSpring: A provider of ecommerce platform software solutions.
- BigCommerce: A provider of ecommerce platform software solutions.
- Abila: A provider of nonprofit software solutions.
- Benevity: A provider of corporate social responsibility and employee engagement software solutions.
- Springbrook Software: A provider of cloud-based finance and administration software solutions for local governments.
- DocuTAP: A provider of electronic medical record and practice management software solutions for urgent care clinics.
- Intelledox: A provider of digital transformation software solutions.
- Auvik Networks: A provider of network management software solutions for MSPs.
- MedMen: A provider of cannabis retail and cultivation facilities.
- EtQ: A provider of quality management software solutions.
- MindBody: A provider of business management software solutions for the wellness industry.
- MyCase: A provider of law practice management software solutions.
- NexTraq: A provider of GPS fleet tracking software solutions.
- Plex Systems: A provider of cloud-based manufacturing execution systems software solutions.
- PinnacleCart: A provider of ecommerce software solutions.
- Reval: A provider of treasury and risk management software solutions.
- SugarCRM: A provider of customer relationship management software solutions.
- TrueCommerce Datalliance: A provider of vendor managed inventory software solutions.
- BlackLine: A provider of financial close management software solutions.
- Factor4: A provider of gift card and loyalty program software solutions.
- Navicure: A provider of healthcare revenue cycle management software solutions.
- North Plains: A provider of digital asset management software solutions.
- AFS Technologies: A provider of enterprise software solutions for consumer goods manufacturers and distributors.
- ProShip: A provider of enterprise shipping software solutions.
- Risk Management Solutions: A provider of catastrophe risk modeling software solutions for the insurance industry.
- SmartBear Software: A provider of software testing and development tools.
- Egenera: A provider of converged infrastructure and cloud management software solutions.
- ClickDimensions: A provider of marketing automation software solutions for Microsoft Dynamics CRM.
- Widen Enterprises: A provider of digital asset management software solutions.
- Granicus: A provider of cloud-based software solutions for government organizations.
- OutMatch: A provider of talent management software solutions.
- MSTS: A provider of B2B payment and credit solutions.
- The Endurance International Group: A provider of web hosting and online marketing solutions for small businesses.
- AbacusNext: A provider of cloud-based practice management software solutions for the legal and accounting industries.
- Intelledox: A provider of digital transformation software solutions.
- Clubessential: A provider of membership management software solutions for the private club industry.
- Bluehost: A provider of web hosting solutions for small businesses and individuals.
- QlikTech International: A provider of business intelligence and data visualization software solutions.
- Accruent: A provider of real estate and facilities management software solutions.
- DealerSocket: A provider of customer relationship management software solutions for auto dealerships.
- Liquid Web: A provider of managed hosting and cloud services.
- Infoverity: A provider of master data management and product information management software solutions.
- Jagged Peak: A provider of ecommerce software solutions for manufacturers and distributors.
- Zen Planner: A provider of business management software solutions for the fitness industry.
- M-Files: A provider of document management software solutions.
- CentralReach: A provider of practice management software solutions for the healthcare industry.
- Stratavia: A provider of database and application automation software solutions.
- Data Innovations: A provider of laboratory information management software solutions.
- GoGrid: A provider of managed cloud hosting services.
- DigiCert: A provider of digital certificate and security solutions.
- Salsa Labs: A provider of donor management and fundraising software solutions for nonprofits.
Accel-KKR’s Investment Approach
Accel-KKR adopts a unique approach to investing, leveraging their deep industry knowledge, operational expertise, and vast network to support their portfolio companies. The firm focuses on the following investment strategies:
A. Growth Capital Investments: Accel-KKR provides growth capital to technology companies seeking to accelerate their growth through product development, market expansion, or strategic acquisitions.
B. Buyouts: The firm acquires controlling interests in established technology companies, working closely with management teams to drive growth and operational improvements.
C. Credit Opportunities: Accel-KKR offers flexible credit solutions to technology companies, including startup business loans, to support their growth and liquidity needs.
The Role of Startup Business Loans in Accel-KKR’s Strategy
Startup business loans play a significant role in Accel-KKR’s investment strategy, particularly in their credit opportunities segment. By providing capital to early-stage technology companies, the firm helps them address critical growth needs, such as hiring talent, expanding market reach, and developing innovative products. This focus on startup business loans allows Accel-KKR to nurture promising tech companies and contribute to the overall growth of the industry.
Accel-KKR’s Focus on Niche Technology Markets
Accel-KKR targets niche technology markets, including software, internet infrastructure, and tech-enabled services. By concentrating on these sectors, the firm can leverage its industry expertise to identify promising startups and provide tailored financing solutions, such as startup business loans, to fuel their growth.
Statistic #1: According to a 2021 report by PitchBook, Accel-KKR has invested in over 250 technology companies since its inception, with a significant portion of these investments involving startup business loans (Source: PitchBook Data).
The Impact of Accel-KKR’s Startup Business Loans on Technology Companies
Accel-KKR’s focus on startup business loans has had a profound impact on the technology companies they support. These loans provide much-needed capital to fuel growth, while also offering startups the flexibility to pursue their strategic objectives without diluting ownership or ceding control.
Accelerated Growth and Innovation
By providing startup business loans, Accel-KKR enables technology companies to invest in product development, expand their market presence, and pursue strategic partnerships or acquisitions. This financial support accelerates growth and drives innovation, allowing startups to gain a competitive edge in their respective markets.
Statistic #2: Accel-KKR’s portfolio companies have experienced an average annual revenue growth rate of 26% (Source: Accel-KKR).
Job Creation and Economic Impact
Accel-KKR’s investments in technology companies, including startup business loans, contribute to job creation and broader economic impact. As startups grow and expand, they hire more employees, create new opportunities, and stimulate local economies.
Statistic #3: A 2020 study by the National Venture Capital Association (NVCA) found that venture-backed companies, including those supported by Accel-KKR, have directly created 2.27 million jobs in the United States (Source: NVCA 2020 Yearbook).
Notable Success Stories of Accel-KKR-backed Companies
Accel-KKR’s startup business loans have played a significant role in the success stories of several technology companies. Some notable examples include:
- Cendyn: Accel-KKR provided a growth capital investment in 2016 to support Cendyn’s expansion in the cloud-based software and services market for the hospitality industry. This investment helped Cendyn acquire several companies, expand its product offerings, and solidify its market leadership position.
- Reapit: In 2017, Accel-KKR invested in Reapit, a leading provider of CRM software for estate agents. With the help of Accel-KKR’s startup business loan, Reapit expanded its international presence and acquired several competitors to strengthen its product offering and market position.
- SugarCRM: Accel-KKR acquired SugarCRM, a customer relationship management software provider, in 2018. The firm’s investment supported SugarCRM’s strategic acquisitions and product innovations, resulting in significant growth and increased market share.
The Future of Startup Business Loans and Accel-KKR
As technology continues to advance and drive innovation across various industries, the demand for startup business loans is likely to increase. Accel-KKR is well-positioned to capitalize on this trend, given its expertise in technology investing and deep understanding of the unique needs of early-stage companies.
A. Fintech and the Evolution of Startup Business Loans
The rise of fintech and alternative lending platforms may lead to new opportunities and challenges for traditional startup business loan providers like Accel-KKR. The firm will need to adapt to evolving market conditions and leverage its industry knowledge and relationships to stay competitive in this dynamic landscape.
B. Accel-KKR’s Commitment to ESG and Impact Investing
As environmental, social, and governance (ESG) factors and impact investing become increasingly important, Accel-KKR is likely to incorporate these considerations into its investment approach. By doing so, the firm can ensure that its startup business loans not only drive financial returns but also contribute to positive social and environmental outcomes.
Accel-KKR & Small Business Loans: The future
Accel-KKR has played a pivotal role in the growth and success of numerous technology companies through its focus on startup business loans.
As the tech industry continues to evolve and demand for financing increases, Accel-KKR’s unique approach, industry expertise, and commitment to supporting early-stage companies position the firm to remain a significant player in this space.
By providing much-needed capital and resources to promising technology startups, Accel-KKR helps to drive innovation, create jobs, and shape the future of the industry.
Accel-KKR vs KKR
Accel-KKR and KKR are both private equity firms that invest in a wide range of industries and sectors. However, there are some differences between them.
Accel-KKR is a private equity firm that focuses on investing in software and technology-enabled services companies. They specialize in middle-market companies that have between $15 million and $300 million in revenue. Accel-KKR was founded in 2000 and has offices in Menlo Park, California, and Atlanta, Georgia. They have raised over $10 billion in capital and have invested in over 300 companies.
On the other hand, KKR is a global investment firm that invests in multiple asset classes including private equity, credit, real estate, infrastructure, and hedge funds. KKR was founded in 1976 and is headquartered in New York City, with offices in various locations around the world. They have raised over $300 billion in capital and have invested in over 900 companies across multiple industries.
In summary, Accel-KKR is more specialized in software and technology-enabled services companies in the middle-market range, while KKR is a more diversified investment firm that invests across multiple asset classes and company sizes.