Investment memorandum
As an investment boutique, we’re always between the investors and entrepreneurs.
Our goal is to collaborate with individuals who create new technologies for the future, take responsibility for their work, and are ready to deliver returns to investors.
Who we are
Seven Rivers Capital is an investment boutique positioned at the intersection of investors and entrepreneurs. We focus on projects and businesses with the potential to create meaningful change and improve the world. Our mission is to collaborate with forward-thinking individuals who develop groundbreaking technologies, take full responsibility for their work, and are committed to delivering strong returns to investors.
I am Arkady Rakhilkin, CEO of Seven Rivers Capital, a financier and investor with over 25 years of experience. Throughout my career, I have been involved in numerous transactions and projects, with a total funding volume of $150 million. My partner, Yerzhan Durumbetov, our Chief Investment Officer, brings unparalleled expertise in structuring and executing complex transactions in the capital markets.
The cornerstone of our firm lies in our expertise and extensive experience, built on unwavering dedication to every deal we undertake. Our guiding principles are rooted in an exclusive mandate and a commitment to full transparency.
Funding Sources
We do not raise capital through traditional funds for reinvestment, as we believe such structures lack efficiency. Instead, we meticulously structure each deal to ensure investments are utilized effectively, minimizing diligence costs and delivering a clear return on investment (ROI).
Our investors’ funds are of transparent origin, verified by reputable banks and legal firms. Our primary clients include seasoned investors and entrepreneurs who are experts in their respective fields, predominantly from Europe and the Middle East.
What We Can Do for Entrepreneurs
We assist in fundraising, participate in strategy development, prepare M&A, and generate business development ideas. We establish networking and conduct financial model audits. The key principle is that after organizing the deal, we continue to support both the investor and the business until the achievement of our crucial milestones. In simple terms, we act as professional matchmakers in the world of capital and ideas and are morally responsible for their strong alliance.
What We Offer to Investors
Our main focus is Fintech & Marketplace businesses. Over the next 10 years, more than 0.5 billion people will generate about $300 billion annually by purchasing and paying for goods and services in the digital world. In China and India alone, the growth of population (up to 3 billion), economy and per capita income allowed them to take 2nd and 3rd place in the world, including due to technology and the construction of digital infrastructure and e-government. The next center of such Digital growth is Central Asia and Africa. Frontier markets, where many transactions are carried out manually or in person, will soon be flooded with investment money with a greater appetite for risk to transform them into an online world.
We organize Deals in key sectors:
1. International Technology Startups
We focus on technology startups in emerging markets with basic digital infrastructure, particularly in IT sectors operating on SaaS, B2B, and B2C models. Our main areas of interest include:
• P2P Payment/Card Technology
• BaaS/Digital Banking
• Ecosystems based on sharing-economics principles
With Generation Z (Zoomers) as the primary consumers for the next two decades, the shift towards shared consumption without ownership and peer-to-peer financing outside traditional banking is reshaping markets. Software solutions based on these principles are setting global trends, bypassing traditional “goods-money-goods” exchanges.
2. The Sharing Economy
We strongly believe in the potential of the sharing economy, which promotes the collective use of resources such as clothing, appliances, real estate, transportation, hotels, and even money. This shift requires innovative solutions like smart cities, built on intelligent transport and housing systems and efficient resource utilization.
As one of the fastest-growing market phenomena, the sharing economy has attracted over $23 billion in venture capital since 2010. These businesses are creating new models for sustainable consumption and collective use, driving growth in areas like smart transport and housing.
3. Private Markets
We specialize in structuring and executing deals in private markets, including high-growth private companies and non-public investments. These opportunities often provide:
• Enhanced returns compared to public markets.
• Access to niche industries or emerging markets with untapped potential.
• Flexible deal structures to align with the investor’s risk appetite and growth objectives.
Our expertise ensures that these private market transactions are optimized for transparency, due diligence, and long-term value creation.
4. Traditional Energy and Resources
Our expertise extends to oil, gas, and mining enterprises, essential for powering the global economy. Currently, 80% of electricity is generated by gas, oil, and coal power plants. Copper remains vital for electricity transmission, and lithium is key for battery production.
We recognize the importance of environmentally conscious resource extraction and actively invest in technologies that align with sustainable practices. We also have significant experience in financing and M&A for hydrocarbon and metal extraction projects.
5. Cloud Infrastructure and Remote Services
Post-COVID, the demand for cloud services, data transmission/storage systems, and data centers has surged. Cloud infrastructure, or Infrastructure as a Service (IaaS), provides essential virtual resources for businesses and government organizations, including:
• Virtual machines
• Processing power
• RAM
• Disk storage
• Internal networks
These solutions allow enterprises to host CRM systems, databases, applications, and entire IT infrastructures in the cloud. Backup sites and critical data storage are especially valuable for the public sector, where reliability and fault tolerance are paramount.
6. MedTech, EdTech, and Telemedicine
Expanding access to medical and educational services is crucial in today’s world. We support projects in these areas that have achieved government certifications, enabling their expansion into new markets. These sectors address vital needs, providing scalable solutions for broader populations and underserved communities.
Through these focus areas, we align with global trends and invest in projects that drive innovation, sustainability, and social impact.
How to Initiate Negotiations with Us
For initial project or deal consideration, we require a teaser, financial model, and beneficiaries’ track records. If inquired, we organize a meeting/conference call with the founders/initiators. The main topics are vision, strategy, values, paths to success, team professionalism, founders’ motivation, market and business parameters, product, and customer components. We then conduct our own due diligence and decide whether to proceed with the deal or decline.
Preparing a deal or business/startup for financing/investment requires preliminary work: financial statement audits, data room population, stress analysis of the economic and financial model, legal opinion, deal structure preparation, investment teaser, and memorandum. All this work is carried out by us and under our guidance, but costs are carried out by the deal’s beneficiaries.
How we do investment process
We act as professional intermediaries between the capital market and business. We assess crucial criteria influencing investors’ decisions and put significant effort into deal preparation. Our analysis and packaging convey current company results, business/project’s scalability, business model’s sustainability/profitability, team motivation, and professionalism to the investor.
Substantial work is carried out before presenting data to the investor; we usually start after signing the NDA, Exclusive Engagement Letter, and payment of the non-refundable initial Fee, demonstrating the seriousness of the beneficiary’s intention.
Next, we prepare the necessary materials and create a shortlist of suitable investment account criteria. Next an NDA is signed and the teaser offered for consideration. If interested, the investor provides a Letter of Intent (LOI) and gains access to the prepared Data Room. Upon confirmation of interest in entering the deal, the investor provides Proof of Funds, signs a head of terms with the beneficiary, and initiates the Due Diligence process as part of deal preparation. The escrow agent typically guarantees the deal’s execution and the payments. In case of success, we receive a Success Fee, ranging from 3.5% to 10% of the financing amount, depending on its size.