25madison and Apollo Funds Launch 25m Evolve, an Enterprise Software Venture Studio Focused on AI-Native Applications
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The launch of 25m Evolve signifies a strategic move by 25madison and Apollo to capitalize on the burgeoning AI sector, particularly within enterprise software. This initiative is poised to address a critical market need for AI-driven operational enhancements in businesses. By focusing on AI-native applications, 25m Evolve is likely to contribute to the digital transformation efforts of Apollo Funds' portfolio companies, potentially leading to improved efficiency and competitive positioning.
From a market research perspective, the collaboration between a venture platform and an alternative investment manager could set a precedent for future venture studios. It may also influence investment trends, directing more capital into AI-focused startups, which could stimulate innovation and growth within the tech sector. The partnership's potential to incubate category-defining startups could also disrupt existing market structures, prompting incumbents to accelerate their own digital transformation initiatives.
The formation of 25m Evolve represents a strategic investment that could have a notable impact on Apollo's long-term financial performance. By incubating AI-native applications, Apollo is not only diversifying its portfolio but also embedding potential growth drivers within its existing investments. The success of these incubations could lead to increased valuations of Apollo's portfolio companies, reflecting positively on Apollo's financial metrics.
In the short-term, the announcement may be perceived positively by investors, as it highlights Apollo's proactive approach to innovation and value creation. Over the long-term, the financial benefits will likely hinge on the successful deployment and market adoption of the incubated AI solutions. The ability of these startups to attract additional investment and scale effectively will be crucial in determining their impact on Apollo's return on investment.
The emphasis on AI-native applications by 25m Evolve underscores the growing importance of artificial intelligence in enterprise software development. AI-native implies that these applications are designed from the ground up to leverage AI algorithms and data analytics, potentially offering more sophisticated and integrated solutions compared to applications where AI is an afterthought.
The partnership’s focus on solving enterprise pain-points with AI suggests that the incubated solutions will be highly tailored, which could lead to significant advancements in areas such as predictive analytics, process automation and personalized customer experiences. The technology's scalability and the ability to rapidly deploy AI solutions will be critical factors in determining the success and impact of 25m Evolve's incubations on the broader technology landscape.
25m Evolve helps enterprises evolve rapidly with the power of AI
25m Evolve incubations will leverage the latest advancements in artificial intelligence to help companies, including Apollo Funds’ portfolio companies, adapt to an ever-changing digital landscape, equipping them with the tools to drive operational improvements and better compete and disrupt within and across industries.
“We believe AI will serve as the cornerstone of future software development, and through 25m Evolve we are excited to incubate category-defining startups at the forefront of this shift,” said Vikram Mahidhar, Apollo’s Data and Digital Transformation Operating Partner. “This venture is a testament to Apollo and 25madison’s longstanding relationship and commitment to long-term value creation.”
25m Evolve incubations and investments are differentiated by their focus on building bespoke tech solutions to solve the pain-points of enterprise customers in partnership with Apollo Funds and their portfolio companies. Through this partnership, 25m Evolve incubations and investments benefit from the studio’s operational expertise and capital support to rapidly deploy and scale validated AI-enabled vertical software solutions with enterprise partners.
Steven Price, CEO of 25madison, said, “Over the past three years, together with Apollo Funds, we've built a formula for co-incubation that sets the stage for this new studio. 25madison’s innovative DNA combined with Apollo’s focus on building stronger businesses can help transform companies and equip them for the future.”
Grant Silow, Managing Director at 25madison, added, “We believe the 25madison and Apollo partnership is a significant differentiator for founders and startups building the next generation of AI-enabled B2B software. 25m Evolve incubations solve problems identified by enterprise customers, and receive Day 1 access to the studio’s dedicated suite of incubation resources spanning data science, software development, UX design, and B2B go-to-market strategy.”
For more information about 25m Evolve, visit 25mevolve.com.
About 25madison
25madison is a Venture Platform that incubates and invests in early-stage startups. 25madison consists of 25m Flagship, 25m Health, 25m Supply Chain, and 25m Evolve. 25madison also offers brand, marketing and UX design services through Creature, an agency that helps propel companies at pivotal moments. With a collaborative approach and a deep skillset across all business needs, 25madison partners with top entrepreneurs to turn high-conviction ideas into big businesses. Find out more at 25madison.com.
About Apollo
Apollo is a high-growth, global alternative asset manager. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of September 30, 2023, Apollo had approximately
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Margaret Strickland
VP Brand & Marketing, 25madison
Margaret.strickland@25madison.com
Source: 25madison
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