Company Profile
Versity’s first fund, in the amount of $50M, focuses on these under-resourced accounting companies. In the next three years, Versity will invest in approximately 50 BIPOC and Women-owned accounting companies with average annual revenue of $1.3M, helping them grow for 3-5 years and exit. Subsequent funds will focus on other professional service businesses such as legal, financial, ICT services and more.
Utilizing our deep network of community leaders, we will identify and invest in profitable, well-established BIPOC and Women-owned accounting firms. Our proprietary data-based assessment tools will also assist in identifying and qualifying these target businesses.
Utilizing our deep network of community leaders, we will identify and invest in profitable, well-established BIPOC and Women-owned accounting firms. Our proprietary data-based assessment tools will also assist in identifying and qualifying these target businesses.
Once these businesses are chosen, we will:
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Train owners and staff to provide better services
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Provide high-value expertise to increase revenue (e.g., loan and financing advisory, outsourced CFO services, insurance, etc.)
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Improve and standardize operation with technology to increase capacity and reduce overhead, increasing net profit
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Provide active branding, marketing, and business development, resulting in new clients and territories, and increasing the quality of experience for existing clients.
Due to racial bias and systemic discrimination, BIPOC and women business owners have difficulty accessing the capital, expertise, and network needed to grow. Services businesses (e.g., accounting, legal, insurance, etc.), are easy to start with no capital requirement, but hard to develop without capital. There are many profitable mature professional service businesses that have been in operation for years but have not had the capacity to expand due to a lack of resources. These small service businesses usually have no exit and no succession plan in place.
Accounting is the backbone of any business but is the Achilles heel of organizations operating in underserved communities. BIPOC in particular is severely underrepresented, with Black people accounting for only 2% of accountants and 0.7% of CPAs nationwide.
Benefits & Impact:
Once our companies are fully developed and highly profitable, we will assist them in exiting to PE, SPAC, IPO, and other options, resulting in:
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High return and demonstrated social impact for our investors: Wealthy patrons that are sensitive to racial issues and corporations who have diversity initiatives will receive low risk, high return, and proven social impact.
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A healthy exit for our owners: Baby Boomer BIPOC and Women entrepreneurs looking for an exit and aspiring to do something meaningful upon retirement will receive a wealth nest egg, as well as extra to invest in diverse businesses and philanthropy
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Better services for underserved communities: Aspiring and current BIPOC and Women professionals will have the opportunity to grow their careers, resulting in well-established, financially successful community leaders. More money will be spent on education and health, leading to the successful development of communities and the next generation.