Arcot Systems
Management Challenges

Arcot Systems, a software company providing authentication solutions to the financial services and enterprise markets, faced the daunting task of raising equity capital in 2001 during a severe technology market downturn. To overcome this tough environment, Arcot turned to Weinstein to create a professional investment package for institutional and corporate venture investors.

Solutions Delivered

Weinstein prepared a Descriptive Memorandum highlighting the investment value and managerial expertise of Arcot. The Memorandum included:

  • Detailed market assessment (market sizing and competitive outlook).
  • Customer value proposition, and sales and marketing strategies.
  • Product and service descriptions, including simplified depictions of complex proprietary technologies.
  • Detailed financial statement projections.
  • Competitive advantages versus alternative methods and products.
Results Achieved

The Arcot Memorandum was the primary tool used to raise $20 million in 2001. The financing round was led by Goldman Sachs and joined by Accel Partners, First Union Bank, Novell, ONSET Ventures, and Oracle. The Memorandum’s content was repeatedly re-used for marketing, sales, and alliances activity.

  Service Description: Raising Capital  
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