About EMRG

EMRG Capital puts a new kind of an emerging market on the financial landscape: digital companies that show predictable, linear earnings growth.

Operating within the digital sector, they are, however, unaffected by the VC mentality and adhere to the traditional measure of business growth: the earnings increase, without promising to become a ‘unicorn’ overnight. That’s why they fly below the radar of most: too unfancy for the VC funds to speculate on and too ‘digital’ for the traditional investors to cope with, they make a perfect target for us.

We seek out the bargain deals, add value to the assets, and sell them for more. The value increase is brought about by the three factors:
1. Earnings growth (assets development, scaling up)
2. ROE growth (economies of scale, outsourcing, finding synergies),
3. The multiples growth (aggregation, internal diversification, re-positioning as tech companies)

In a world spoiled with cash, this segregated and underfinanced market is a window of opportunity for the entrepreneurial investor.

What we do

EMRG generates up to 15% p.a. to the investors by investing in digital assets, such as online media, product review websites, and eCommerce.

We enable investors to tap into the growth of a new kind of an emerging market: digital equity. We do not mean startups and unicorns. We mean cash cows, profit-generating companies valuated using ‘normal’, not ‘tech’ multiples. Specifically, eCommerce, marketplaces, and product review media.

Team

The firm’s partners have invested in and developed various digital projects for over 7 years. That includes online media, lead-gen websites, and e-Commerce. Their network helps to attract the best talent, while their experience helps to both spot the deal defects and recognize diamonds in the rough.

Capabilities

Origination

Having choice is the best leverage. We scout the market regularly to keep the deal pipeline full, so that we jump on the best 1% of the deals available.

Value Discovery

Financial spreadsheets are similar to rearview mirrors: too small to capture the whole picture, and useless to forecast the road ahead. Their sole purpose is to prove the asking price, while the buyer often falls prey to adverse selection (meaning that the seller always knows more about the project). 

Is this a hidden gem, with a good foundation and a lot of potential? Or is it a cheaply made website that is being sold because it has already reached its zenith?

As digital natives, we look beyond the spreadsheets and into the factors that stand behind the future revenues. Those factors include how balanced vs. how shady SEO practices were used, the true content and maintenance costs, backlinks reliability, the replication risk, the affiliate network risks, as well as the opportunities for UX, SEO, content, and brand image boost. 

Management

Two points set us apart. Firstly, our background is in operating digital projects. It puts us in a position to recognize a great managerial capability, as well as a deficiency, so we can provide great managers with more capital. It also allows us to spot and replace the bad managers with great ones and benefit from the value increase. Secondly, we put our own capital at risk ahead of our investors’ capital. If there is a loss, we deduct it from our own share, protecting the investor interest on our own behalf.

Industries

CORE INDUSTRY

• Online media (product review and lead-gen websites)

AREAS OF INTEREST

• Marketplaces
• Ads-monetized online media
• eCommerce with owned traffic
• Affiliate marketing companies
• Domain names trading
• Other kinds of digital assets

Contacts

Kyiv Office

Volodymyrska St, 52/17
Kyiv, 01030, Ukraine
+38 093 323 36 24
yaro@emrg.capital

NYC Office

154 Grand St
New York
NY 10013, USA
+1 646 783 0663
yaro@emrg.capital