We invest early and roll up our sleeves immediately to
get you to market faster
get you to market faster
Strategy
Differentiated Approach
YL Ventures invests early in core-technology software companies in and around the Internet space, and accelerates their evolution via value-added involvement and Silicon Valley-based business development. We then spearhead the exit process, with particular expertise in arranging strategic acquisitions by US-based corporations known to the firm.
It is intended that exit strategies are conceived (and potential acquirers identified) prior to making investments, thereby reducing risk for us and the entrepreneurs. By maintaining capital efficiency and minimal shareholder dilution throughout the life of our investments, we significantly broaden the range of potential exit opportunities in terms of timing and valuation parameters.
Focusing on providing added value, we help entrepreneurs as early as the due diligence phase when we leverage our global network to make introductions to potential customers, partners, board members and key hires. We continue as business development partners all the way to strategic acquisition, our preferred exit route.
Strategic acquirers stay close to us for access to great talent and technologies at reasonable valuations, seeking to address product gaps and reduce time-to-market. We match acquirer interest with companies in our portfolio, thereby creating potential M&A opportunities. Strategic acquirers provide entrepreneurs with not only a path to liquidity, but also a resourceful corporate home where their innovations can flourish!
Case Study
On May 9, 2011, Limelight Networks, Inc. (Nasdaq: LLNW) acquired AcceloWeb, Ltd., a YL Ventures portfolio company since our initial investment in July 2009.
In the press release, Limelight said: "The talented AcceloWeb team has built the most innovative solution in the sector and we are excited to join forces with them to define best-in-class for this market." AcceloWeb was quoted saying: "We're pleased to join Limelight and continue our work building Internet scale software that improves end-user experiences on the Internet." The press release went on to say, "YL Ventures, headed by Yoav Andrew Leitersdorf, participated in the transaction as an investor, strategic advisor, and board member."
When we made the initial investment in AcceloWeb, Limelight was within the top two on our list of potential acquirers, along with Akamai Technologies, and so we had predicted that AcceloWeb’s most likely acquirer would be a Content Delivery Network.
Starting in the due diligence phase and throughout the life of the investment, we have introduced AcceloWeb to over a hundred potential customers, partners and strategic acquirers, in order to rapidly bring AcceloWeb’s technology to market. This process not only helped establish AcceloWeb in the marketplace, but also helped guide AcceloWeb’s product and technology roadmap and put the company on a direct ‘collision path’ with the CDNs.
About halfway into the investment, YL Ventures had sourced, motivated and recruited into the company a top sales executive based in Boston, MA, who had previously spent 10 successful years in various senior sales roles at Akamai Technologies, including VP of Global Channels.
We believe that Limelight’s acquisition of AcceloWeb is a direct result of three major factors: First, the high quality and superior performance of AcceloWeb’s technology as developed by its excellent founders. Second, the live market feedback that AcceloWeb received throughout the life of the investment from dozens of potential customers, partners and acquirers. Third, the successful recruitment and terrific execution of the top sales executive from Akamai. The sale of AcceloWeb to Limelight is a ‘classic’ case study of YL Ventures’ investment strategy.
YL Ventures is not a typical venture capital firm. They go beyond the call of duty in critical business areas such as business development. We feel aligned with YL Ventures in strategy since we all share similar goals and aspirations."
Amos Peleg
Co-Founder and CEO
Upstream Commerce
Amos Peleg
Co-Founder and CEO
Upstream Commerce
