Charting New Waters

While critics point to a frothy market in which valuations for investments are too high as proof conditions are not right to be a venture capitalist, Jeff Sica, chief investment officer of Circle Squared Alternative Investments (CSQ), thinks today is as good a time as ever.

“The market has its challenges,” Sica says, “[but] venture capital still has room to run.”

Sica, whose CSQ provides independent financial products in the alternatives space to families and investors not typically exposed to that thesis, announced last month his advisory appointment to AITV, a San Francisco-based, early-stage venture firm serving high net worth investors. In this role, Sica will help develop a coherent message about AITV and portfolio companies to investors not typical to Silicon Valley. Given both side’s desires to bring alternatives to new investment groups, it made sense for Sica/CSQ to join with AITV.

“To raise capital [from new sources], they need to be able to communicate their message effectively,” he says.

Founded in 2013, AITV focuses exclusively on IT software companies. Within that sector, the fund managers put capital to work in three themes they have identified as Big Data, Pervasive Connectivity (“Internet of Things”) and Platforms & Marketplaces. AITV’s managers believe focusing on these specific subsectors differentiates the firm from more generalist IT investors.

While AITV portfolio companies are early-stage, they’re not “ultra” early-stage, says Sica. The businesses are farther along than that, and in some cases are considered medium-growth. As a special advisor to AITV’s board, Sica will provide the firm’s investment team with strategic, financial, technological and commercial assistance. He will also work with some portfolio companies to help address operational issues. While he won’t have day-to-day responsibilities for the portfolio companies, there will be a certain level of accountability to him and the rest of the board, he says.

Sica founded CSQ in 2014 to provide affluent, high net worth individuals and advisors with access to the alternative investment space typically open to only institutions. CSQ’s expertise includes private equity, real estate, and private placement offerings. Furthermore, the New Jersey-based firm coaches and mentors advisors in communicating to their own clients the role and advantages of the alternative investment space.

These kinds of expertise should come in handy as Sica continues to help navigate AITV through the often choppy waters of venture capital investing. Sica points to major technology companies investing alongside venture firms as signs of a rising tide that will lift all boats in the sector.

Sica is excited about imparting his wisdom and expertise to AITV even though he’s not a Silicon Valley guy. As part of his arrangement with the firm, Sica has the opportunity to source deals for AITV. Sica, whose appointment to AITV was announced on Jan. 29, has already brought two potential investments to the board’s attention that are currently being considered, he said.

“This is the most dynamic board of visionaries I’ve seen in a long time,” Sica says of AITV’s leaders. “They have a firm grasp on where the software industry is going.”