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The Power of Flexible Capital in Tech's Expansion Era with Randy Garg of Vistara Growth

The Power of Flexible Capital in Tech's Expansion Era with Randy Garg of Vistara Growth

Episode 182

This week we welcome Randy Garg, Founder and Managing Partner of Vistara Growth. Randy shares his journey from his beginnings at PwC and Discovery Capital to co-founding Beedie Capital in 2010, and launching Vistara Growth in 2015 with support from the Beedie family as his first LP.

Randy discusses the challenges tech companies face in securing growth capital and how Vistara Growth offers a mix of Growth Debt and Growth Equity to meet these needs, highlighting successful investments in companies like Zafin and Kore.ai. He delves into the state of private credit, public tech companies, and Vistara's fundraising strategies for its funds, including the transition from family office LPs to institutional LPs with Fund Five.

Additionally, Randy talks about the importance of having a credit mindset, distinguishing growth debt from venture debt, and shares strategies for businesses to achieve sustainable growth and overcome scaling challenges. He also emphasizes leadership's role in growth and shares personal recommendations for podcasts, newsletters, and books, along with his life lesson on the importance of self-belief.

About Randy Garg:
Randy Garg is Founder and Managing Partner of Vistara Growth which provides creative and tailored Growth Debt & Growth Equity financing solutions to mid-later stage technology companies across North America. Vistara's typical investment size ranges from $10 million to $30 million for companies that have scaled or are scaling past $10 million+ in revenues. To date Vistara has raised $600M and is currently investing out of its fifth fund.

Prior to launching Vistara, Randy co-founded and was Managing Partner of family office group Beedie Capital (2011-2015). During that time he sourced, completed and managed numerous growth capital financings with particular emphasis on the technology sector.

Randy received his BBA from York University, his MBA from UBC, and holds a Chartered Financial Analyst (CFA) designation.

In this episode, we discuss:

(01:00) Randy shares his extensive background in venture capital, private equity/debt investing, and his significant experience in corporate finance and M&A

(03:58) His role as Co-Founder and Managing Partner at Beedie Capital Partners

(05:55) Founding Vistara Growth to provide flexible Growth Debt and Growth Equity financing solutions to mid-later stage technology companies across North America

(07:48) His stint at PwC Corporate Finance leading the firm’s corporate finance activities across Western Canada for the technology practice

(08:44) Vistara Growth's investment philosophy, emphasizing flexible growth capital to support companies as they scale past $10 million+ in revenues

(10:21) The current state of private credit and public tech company valuations, identifying opportunities despite market challenges

(11:08) Vistara Growth's investment in Zafin

(16:45) The broader state of private credit, venture capital retreats, and the impact on companies seeking financing

(20:21) The dynamics of the Canadian public market for small-cap tech companies, contrasting it with private financing strategies

(23:02) Kore.ai's growth, from significant early achievements to becoming a leader in enterprise-grade virtual assistant platforms

(25:52) Explains the unique offering of growth debt and the concept of "rental equity," differentiating Vistara Growth's approach from traditional venture debt

(27:09) Future opportunities and strategies for Vistara Growth, focusing on the expanded market gap for flexible capital solutions

(31:41) Discusses Vistara Growth's investment strategy and focus areas, including sector-specific strategies and the firm's approach to supporting portfolio companies

(35:22) Concludes with future plans for Vistara Growth, emphasizing raising the rest of Fund Five, deployment strategies, and team growth.

Fast Favorites:

  1. 🎙- Favorite Podcast: Invest Like The Best

  2. 📰- Favorite Newsletter / Blog: Bloomberg, Wall Street Journal, Globe and Mail, TechCrunch

  3. 📲- Favorite Tech Gadget: Peloton Bike+

  4. 📈-  Favorite New Trend: Focusing on health

  5. 📚- Favorite Book: Outlive

  6. 🤔 - Favorite Life Lesson: Always been that on yourself.

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