Torc Acquired by Randstad

Sharing some happy news from our portfolio, which had its first realization this quarter. On May 10, Randstad NV acquired Torc, a September 2021 investment into which we made follow-on investments in January 2022 and January 2023.

Torc is an AI-powered platform for engaging remote software developers that we co-incubated with Recognize Partners and the founding team during the summer of 2021. From Asymmetric’s investment through its final quarter of independent operations, Torc grew into a thriving business with attractive run-rate net revenue, and became a strategic partner to many delighted repeat customers from enterprise through SMB. In addition to consistent management support, Asymmetric sourced Torc’s Chief Revenue Officer (who previously led enterprise business at Catalant, the company that Asymmetric Managing Partner Rob previously founded). 

While we believed the company had a bright future and powerful independent prospects, management, Asymmetric, and our co-investors felt comfortable that the sale price (which represented a very fair revenue multiple) and speed/certainty of close from a preemptive inbound suitor justified a timely exit. Torc and Randstad had had a successful and mutually beneficial commercial relationship and the acquisition conversation flowed naturally from that partnership.

We see Torc as validating Asymmetric’s model in a handful of ways:

• First, attractive entry price and strong founding team construction reduce risk. In Torc, we backed an experienced group with multiple successes in the same space at terms that we believed were fair for both sides.
• Second, Asymmetric value-add changes deal outcomes. We are confident that Asymmetric’s help (and that of our co-investors), meaningfully altered the trajectory of this business for the better. We firmly reject the VC mantra of writing checks and blindly hoping for the best. 
• Third and most importantly, strategically significant companies with respectable P&Ls usually find acquisition homes, and often at compelling multiples. We are beyond thrilled for the Torc team and look forward to future exits leaning into these themes.

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