As organizations increasingly adopt cloud technologies, the anticipated simplification of operations hasn't fully materialized. The intricate nature of these systems often requires specialized assistance for companies seeking to implement and maintain them effectively. This necessitates skilled professionals capable of handling tasks such as system integrations, overseeing hybrid and multi-cloud infrastructures, and ensuring seamless data accessibility.

Tercera, a newly established venture capital firm launching today, aims to address this challenge by focusing investments on companies that provide support and consulting services. This represents a unique investment strategy, diverging from the typical venture capital emphasis on software and hardware development.

Chris Barbin, the founder and CEO of Tercera, possesses extensive experience in this domain. He was a founding member of Appirio, a consulting firm established in 2006 during the early stages of modern cloud computing. His previous company recognized the opportunity to assist businesses in utilizing emerging tools like Salesforce, Google, Workday, and AWS. Wipro acquired the company in 2016 for $500 million, following over $117 million in funding, as reported by Crunchbase.

Barbin contends that the current level of complexity has escalated, creating a growing demand for specialized expertise to ensure successful implementation and operation. He believes this requires a dedicated type of investor. “While there has been increased investment in professional services companies recently, no firm has exclusively concentrated on this specific business model,” Barbin stated.

During its initial research, the firm’s founders identified key platform providers such as Salesforce, Twilio, Snowflake, DataDog, and Cloudflare. They estimate that between 7,500 and 10,000 consulting companies currently support organizations utilizing these platforms. “The firm intends to foster the development of leading service providers for these emerging [platforms], or potentially establish one or two firms with comprehensive expertise across multiple [SaaS platforms],” he explained.

Tercera will focus on established companies generating revenue between $5 million and $20 million, with the potential for expansion into the hundreds of millions, and will provide investments ranging from $5 million to $20 million per opportunity.

Although recently founded, the firm anticipates having a team of 8 employees by mid-year. Barbin mentioned that at least one investment is currently under consideration, but details are not yet available.