Entrepreneurship, Leadership, and Technology are Core to Successful Partnerships and Investment Funding at Palla Capital
Subscribe: iTunes / Spotify / Stitcher / RSS
Apply to be a guest on our podcast here
With a Master’s in Computer Science from Villanova University, Srikanth Palla pursued global opportunities in technology management for two decades. The completion of his thesis based on his M&A (Mergers & Acquisitions) experience was the springboard to his own technology focussed holding company Palla Capital.
The Palla Capital team has collectively raised over $6 Billion in capital, taken 28 companies public and has over 120 years of experience. Coming together with a targeted purpose, these remarkable victories will deliver world-class innovation and scale across technology, fintech and e-Commerce marketplaces. The team will bring to life the vision and mission of Palla Capital.
“I am very passionate and excited about business, entrepreneurship and leadership more than delivering my value as an employee to a company,” Palla reflected.
The Dawn of a Holding Company
After 20 years in corporate business focusing on technology assets and digital transformation, like many entrepreneurial founders, Palla reflected on his journey. “I had two options. I could continue doing what I was doing which was going well or I could take an exit and explore something that I really believe in and I am passionate about… I can add a lot of value by bringing people together,” says Palla as he describes his journey. Helping a friend in the tech M&A space and discovering a niche was the beginning.
Palla further elaborates, “Like all entreprenuers, I took a leap of faith…I had the experience and I had the knowledge. I worked hard to form a very good team and everything came together. But, you have to work for it. Nothing is easy and pre-packaged for you out of thin air.”
The Palla Capital Distinction
There are multiple components that drive the exceptional model of Palla Capital. “We are not a Fund. We are a holding company. We focus on three investment themes: technology, fintech and e-commerce,” said Palla.
He explains that “The holding structure gives a direct investment option for accredited investors, HNWI’s (High-net-worth individual) and Family Offices. So, that is the difference between a holding company and a fund structure.” He added that there is also lower risk associated with a holding company. “In a holding company you risk less,” said Palla. He went further to explain that “You don’t pay a management fee and carried interest when you do a direct investment.” The result is that the returns can be larger and more efficient.
Another core of the Palla model is technology. “10 to 20 years from now there will be more technology, not less. There will be more Artificial Intelligence (AI), more Machine Learning (ML) and more data science. We are looking at businesses focused on technology…That is the underpinning for every acquisition and development … You need people to lead that. We believe in leaders. We look for leaders. These are the two main factors that we look at when we look at an acquisition,” explained Palla.
Palla Capital recently added Craig Connors as its CFO. Connors has served as CFO with hedge fund managers, private equity firms and family offices, and has over 25 years of experience on Wall Street.
Sai Koorapati, a stakeholder in Palla Capital, is a digital transformer and brings decades of experience in technology, e-commerce, retail, automotive and more. He heads up technology at Callaway Golf. Wallace Glausi, a founding member, manages the legal aspects of the organization. Glausi has experience with SEC (Securities and Exchange Commision) requirements and taking organizations public. Martin Magida, is another prized asset in human capital who recently joined the team as an Investment Banking and M&A Advisor. Magida has taken 14 companies public.
What Does Palla Capital Look For In A Leader?
Leadership traits, situational awareness and human relations approach foster transformative teams. Palla’s first thought is to “Always be flexible, because business needs flexibility. [Sometimes] You have to change your course a little bit. And some people have trouble doing that.”
Listening skills and having the right people around you are additional tools that Palla knows add to the success of strong leaders. “Invest your time and energy money into something that can actually create some value at the end of the day. As long as we can listen and work with one another, that is what is important,” stressed Palla.
Watch Full Interview:
What Types of Prospects Make a Good Fit with Palla Capital?
Palla Capital looks for two types of assets. According to Palla those include “A pure IP (Intellectual Property), with no revenue yet, but with a strong potential for revenue leveraging IP assets… The other is pure cash flow, similar to a private equity firm acquisition.” After researching the market and finding companies that focus on one area, Palla explains, “Our strategy is a hybrid…You can bet on companies that could be really, really huge in five to ten years…But, at the same time deploy your capital against revenue generating assets.” Palla concluded.
Arbitrage Alpha is the term coined by Palla Capital that expresses their hybrid VC (Venture Capital) and PE (Private Equity) strategy. This allows for leveraging the arbitrage within the private markets and also when the pooled private assets are taken public. Pooled and streamlined assets with a hybrid VC and PE strategy allows Palla Capital to be open to deals ranging from startups to pure scaling.
Essentially, we invest in, build and acquire assets and companies within technology, fintech and e-commerce verticals.
Technology Acquisitions and Innovations
Palla Capital has completed one pure IP acquisition in the Augmented Reality (AR) and Virtual Reality (VR) and metaverse space. On the technology side Palla Capital has acquired four active patents with additional supporting patents. Palla explains that this technology offers the ability of virtual users to communicate in real time in a virtual environment.
Their second acquisition is a psychology-based IP that helps in finding the right partner for dating and matchmaking. This technology will be combined with AI and ML and will be useful for people who want to find the right match. Not just the right date!
How Important Is the Relationship Between Investor and Founder?
Palla said, “Creating value is the optimal output. However, in this process, there must be the nurturing of the relationship between the investor and the founder.” Palla is certain that “There is no divorce option in this case… It’s very important about who you bring on board. The same for them, It is a two- way street. We spend a lot of time with the founders.”
How Can Investor Partners Get Involved with Palla?
“We want to work with investors who understand our space. It’s not just about trying to get a check from them. If they understand what we are trying to do, then there is a fit…Then we talk about how we can scale their investment? If there is a fit, we go to the next level… Fit is very important,” stressed Palla.
Currently, there are two ways that investors can get involved with Palla Capital. There is an active Regulation D (Reg D) private placement offering that is open for accredited investors, HNWIs and family offices, but very soon, they will also be taking this investment to retail investors via a Regulation CF (Reg CF) offering. Interested investors can reach out via LinkedIn or visit the organization’s website for more information.
Moonshot – Palla Capital’s Trendsetting Future
As an organization that is striving for the highest northern peaks, one goal is to increase the ability for entrepreneurial start-ups and early stage companies that are generating some revenue to be able to raise capital to grow and scale. Palla’s new platform for startups will help the founder’s to raise capital. Unlike other platforms that require the founder to do all of the research, Palla Capital will provide advice, direction and simplify the fundraising process by utilizing the strength and knowledge of their team. “We want to compress the six to nine month runway into six to nine weeks,” said Palla when discussing the process of raising capital via their new fintech platform (a.k.a Moonshot).
“This is a huge win for the founders looking to raise capital and is at the core of Palla Capital’s vision and mission,” said Palla.
About
We partner and invest in companies and with founders who dare to push the envelope. We Dare to Dream, because, “Everything starts with a dream”. We are a revolutionary platform that drives transformative growth with a hybrid venture capital, private equity and entrepreneurial investment strategy that hinges on our network expanse and innovative technology-driven ideas.
For more information visit https://www.pallacapital.com/
