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Growth Equity
arrowrootcapital.com

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Investments

30

Portfolio Exits

8

Funds

6

Partners & Customers

1

Service Providers

1

About Arrowroot Capital

Arrowroot Capital is a growth equity firm based in Santa Monica focused on growing and mature recurring-revenue software businesses. The Firm seeks to partner with management to accelerate growth and help guide the company to its ultimate exit. Arrowroot targets equity investments in the range of $5 million to $25 million and has the flexibility to pursue larger opportunities.

Arrowroot Capital Headquarter Location

100 Wilshire Boulevard Suite 1830

Santa Monica, California, 90401,

United States

310-566-5966

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Latest Arrowroot Capital News

Engage3 Raises $35M in Series D Growth Funding Led by Arrowroot Capital

Dec 3, 2021

Engage3 Raises $35M in Series D Growth Funding Led by Arrowroot Capital DAVIS, Calif., December 2, 2021-- Engage3, the leading provider helping retailers and brands profitably grow revenue and drive store trips by tracking and optimizing their Price Image, today announced that it has closed a $35M Series D round of growth financing to bolster its market leadership and accelerate global expansion. This round is led by Arrowroot Capital, a leading US growth equity firm specializing in B2B SaaS, with additional participation from Sweetwater Private Equity and existing investors including Black Diamond Ventures. Engage3 will use the growth financing to further execute on its roadmap as well as the below plans: -- Global expansion across 30+ new countries -- Enhancements to the company’s Price Image Management Suite for: • FMCG and non-FMCG retailers and brands • Convenience & fuel retailers -- Launching new products to measure and enhance trade promotions -- Build further capabilities to continue serving the world’s largest organizations, of which Engage3 already works with 6 of the top 10 largest global retailers -- Doubling the team size to support and accelerate the above growth As part of the new growth capital, Engage3 welcomes Matthew Safaii, Founder and Managing Partner of Arrowroot Capital, and Doug Bewsher, EIR at Arrowroot Capital who formerly served as CEO of Leadspace and CMO of both Salesforce and Skype, to the company’s Board of Directors. “We have been tracking Engage3 for almost 5 years and have been very impressed by how well they have executed during that time,” said Safaii. “The company’s tremendous year-over-year growth rate, the criticality of the business problems their solutions address, and the massive market opportunity ahead of them led to this being an easy investment decision for us.” “Price optimization, Price Image Management and omni channel competitive intelligence are increasingly critical skills for retailers of all sizes to master,” commented Doug Bewsher. “Engage3’s leading intelligence platform, real time data analytics, and amazing roster of world class customers, position them to continue to lead this category and help clients use data and AI to transform their pricing strategies.” “This growth round will allow us to unlock tremendous value for our customers as we accelerate our investments in our Price Image Management Suite,” said Edris Bemanian, CEO of Engage3. “Arrowroot’s reputation and expertise precedes them. We are incredibly proud and excited to bring them on as our newest investors to lead this round.” Existing Engage3 investors include The March Fund, Pereg Ventures, Moneta Ventures, Wells Fargo, NewRoad Capital Partners, Swift Communications, The McClatchy Company, and angel investors including the Founder of Sleep Train/Mattress Firm. About Engage3 Engage3 was founded by the creators of KhiMetrics (acquired by SAP), who are credited with inventing the retail price optimization space. Engage3's leadership team is composed of former KhiMetrics, SAP, Revionics, dunnhumby, KSS Retail, IBM/DemandTec and Nielsen executives. Engage3's Competitive Intelligence Management (CIM) is an AI-assisted, attribute-based, and data science-driven solution that provides accurate, granular competitive data (30 billion product pricing records collected annually in the U.S. and Canada) and like-item-linking visibility. CIM helps retailers reverse-engineer their competitors’ pricing and assortment strategies across channels, markets, and items. Price Image Management (PIM) is a next generation pricing solution that defines the impact of strategic pricing alternatives and unlocks pricing recommendations based on a retailer’s objectives for Price Image, sales, and profitability. Engage3’s Price Image management solutions help retailers understand and manage their Price Image and align it with their sales and profitability objectives using predictive modeling. Learn more at http://www.engage3.com. About Arrowroot Capital Arrowroot Capital is a global growth equity firm based in Santa Monica, CA with offices also in Miami, FL, focused on minority, majority, and buyout investments in B2B software companies. The firm serves as a catalyst for growth-related initiatives by partnering with management and leveraging its deep enterprise software expertise to deliver meaningful, tangible value. Arrowroot targets initial equity investments in the range of $5 million to $50 million and has the flexibility to pursue larger opportunities as well as a broad range of transaction types. Arrowroot also assists in targeting and executing add-on acquisitions for its portfolio companies to help drive growth and increased market position. Learn more at http://www.arrowrootcapital.com. About Sweetwater Sweetwater Private Equity is a boutique private equity firm headquartered in Encinitas, CA. The firm specializes in providing liquidity options to institutional investors of “mature” growth companies – high-margin business models with proprietary technologies and sustainable growth. Sweetwater makes minority investments in growth equity and lower mid-market buyout opportunities with an emphasis in technology, healthcare, and consumer sectors. Learn more at http://www.sweetwaterpe.com. About Black Diamond Ventures Founded in 1998, Black Diamond Ventures (BDV) is a venture capital firm headquartered in Los Angeles, CA with offices in Silicon Valley, CA. BDV invests in market-transforming technologies, focusing on multi-stage investments in the biotechnology, semiconductor, and big data sectors. The firm is led by partners, many of whom are former founders and operators of successful technology companies. Our firm has an established network of investors providing the technical experience that growing companies require. For over two decades, BDV has invested between $2 to $10 million in transformative companies and visionary founders. Learn more at http://www.bdventures.com.

Arrowroot Capital Investments

30 Investments

Arrowroot Capital has made 30 investments. Their latest investment was in Engage3 as part of their Series D on December 12, 2021.

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Arrowroot Capital Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

12/1/2021

Series D

Engage3

$35M

Yes

7

10/5/2021

Series E

mParticle

$150M

No

9

6/24/2021

Series C

Tulip Retail

$28M

Yes

2

12/15/2020

Unattributed VC

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$99M

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10

12/4/2020

Series D

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$99M

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10

Date

12/1/2021

10/5/2021

6/24/2021

12/15/2020

12/4/2020

Round

Series D

Series E

Series C

Unattributed VC

Series D

Company

Engage3

mParticle

Tulip Retail

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Amount

$35M

$150M

$28M

$99M

$99M

New?

Yes

No

Yes

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Co-Investors

Sources

7

9

2

10

10

Arrowroot Capital Portfolio Exits

8 Portfolio Exits

Arrowroot Capital has 8 portfolio exits. Their latest portfolio exit was FiscalNote on November 08, 2021.

Date

Exit

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Acquirer

Sources

11/8/2021

Acq - Pending

$991

3

00/00/0000

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10

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10

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10

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10

Date

11/8/2021

00/00/0000

00/00/0000

00/00/0000

00/00/0000

Exit

Acq - Pending

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Companies

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Valuation

$991

Acquirer

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Sources

3

10

10

10

10

Arrowroot Capital Fund History

6 Fund Histories

Arrowroot Capital has 6 funds, including Arrowroot Capital IV.

Closing Date

Fund

Fund Type

Status

Amount

Sources

9/14/2020

Arrowroot Capital IV

$102.24M

3

11/15/2017

Arrowroot Capital III

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$99M

10

1/24/2017

Arrowroot ICIX Warehouse LP

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$99M

10

1/19/2017

Arrowroot Serviceaide Warehouse LP

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$99M

10

Arrowroot Capital

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$99M

10

Closing Date

9/14/2020

11/15/2017

1/24/2017

1/19/2017

Fund

Arrowroot Capital IV

Arrowroot Capital III

Arrowroot ICIX Warehouse LP

Arrowroot Serviceaide Warehouse LP

Arrowroot Capital

Fund Type

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Status

Amount

$102.24M

$99M

$99M

$99M

$99M

Sources

3

10

10

10

10

Arrowroot Capital Partners & Customers

1 Partners and customers

Arrowroot Capital has 1 strategic partners and customers. Arrowroot Capital recently partnered with MedNet Solutions on July 7, 2014.

Date

Type

Business Partner

Country

News Snippet

Sources

7/14/2014

Partner

MedNet Solutions

United States

Arrowroot Capital makes $4 million investment in MedNet Solutions

`` MedNet Solutions is thrilled to be partnering with Arrowroot Capital , '' said John M. Robertson , President and CEO of MedNet Solutions .

2

Date

7/14/2014

Type

Partner

Business Partner

MedNet Solutions

Country

United States

News Snippet

Arrowroot Capital makes $4 million investment in MedNet Solutions

`` MedNet Solutions is thrilled to be partnering with Arrowroot Capital , '' said John M. Robertson , President and CEO of MedNet Solutions .

Sources

2

Arrowroot Capital Service Providers

1 Service Provider

Arrowroot Capital has 1 service provider relationship

Service Provider

Associated Rounds

Provider Type

Service Type

Counsel

General Counsel

Service Provider

Associated Rounds

Provider Type

Counsel

Service Type

General Counsel

Partnership data by VentureSource

Arrowroot Capital Team

3 Team Members

Arrowroot Capital has 3 team members, including current Managing Director, Thomas Olivier.

Name

Work History

Title

Status

Matthew J. Safaii

Founder

Current

Thomas Olivier

Managing Director

Current

Kareem El Sawy

General Partner

Current

Name

Matthew J. Safaii

Thomas Olivier

Kareem El Sawy

Work History

Title

Founder

Managing Director

General Partner

Status

Current

Current

Current

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