Arcanium Ventures Inc.
Technology-Enabled Services · Delaware C-Corp · USD
GSV INVESTMENT FII
$250,000
Convertible Note · Jun 2023
CURRENT VALUE FII
$0
Written off · Total loss
MOIC BL
0.00x
Blended value $0
STATUS DPI
Shutdown
Finalized · Company ceased ops
TIER DPI
Red
Complete write-off
FINANCIAL ASSESSMENT
P&L Summary — Oct 2021 – Dec 2022 (USD)
Source: Arcanium Software, LLC — Profit and Loss (Accrual Basis, Feb 24 2023); Arcanium Ventures Inc. — P&L Feb 2024
| LINE ITEM | 15-MO TOTAL (USD) |
|---|---|
| Sales Revenue | $2,108,726 PL |
| Payroll Expenses | $865,246 |
| Contractors | $610,140 |
| Taxes (Quickbooks & Rippling) | $154,394 |
| Wages (Quickbooks & Rippling) | $99,148 |
| Recruiting | $47,628 |
| Office & Software | $28,792 |
| Other Operating | $140,115 |
| Total Expenses | $1,945,463 PL |
| Net Income | $163,263 |
QUARTERLY REVENUE & NET INCOME (USD)
TOTAL REVENUE (15 MO)
$2,108,726
Oct 2021 – Dec 2022
CASH (DEC 2022)
$264,891
Bank accounts · Balance Sheet
TOTAL ASSETS
$350,713
Dec 2022 · Incl. $84K AR
FEB 2024 REVENUE
$122,713
Last reported month · Gross Profit $87,941
INVESTMENT STRUCTURE
Deal Terms
Source: Convertible Promissory Note (Jun 15, 2023); Warrant to Purchase Shares (Jun 12, 2023); Credit Memo (Jul 12, 2023); GSV Fund II Record Sep 2025
CONVERTIBLE NOTE
SecurityConvertible Promissory Note CN
SeriesSeed
Principal$250,000 USD CN
Interest Rate8% per annum CN
CompoundingOn principal and unpaid interest
Maturity DateJune 15, 2025 CN
Valuation Cap$8,000,000 CN
Discount20% on qualified financing
LenderGSV Investors II LP
WARRANT
SecurityCommon Stock Warrant WC
Coverage5% of Fully Diluted WC
Exercise Price$1.0000 (409A) WC
Term10 years
Issue DateJune 12, 2023
ExpiryJune 2033
HolderGolden Section Holdings, LLC
Current Value$0 (Worthless)
CONVERSION TERMS
Qualified Financing≥$2,000,000 equity raise
Conversion PriceLower of: (A) 80% of equity price, (B) $8M cap / FD shares
Auto at Maturity$8M / FD shares → Preferred Stock
Change of ControlGreater of: 2x principal + interest, or converted value
Liquidation Pref1x (on conversion to Preferred)
No PrepaymentWithout Majority Holder consent
CREDIT MEMO (GST SERVICES)
DateJuly 12, 2023 CM
Amount$250,000
TermsIn-kind services credit for companion note to GS Holdings
Usage Limit1/3 of any GST Services invoice
INVESTMENT HISTORY
Investment Timeline
Source: GSV Fund II Record (Sep 2025), Convertible Note (Jun 2023), Warrant (Jun 2023), GS Value Tracker (Dec 2025)
OCT 2021
Company Begins Operations
Arcanium Software, LLC starts generating revenue. First P&L entry: Oct 2021 sales of $38,038. Technology-enabled services model providing creative, recruiting, and staffing services.
DEC 2022
15-Month Financials Show $2.1M Revenue
Cumulative revenue $2,108,726 with $163,263 net income over 15 months. Total assets $350,713 including $264,891 cash. Shareholder loan of $150,000 on balance sheet.
JUN 9–15, 2023
Convertible Note Executed — $250,000 USD
GSV Investors II LP issues convertible promissory note to Arcanium Ventures Inc. (Delaware C-Corp). Principal: $250,000 at 8% compounding interest. Valuation cap: $8M. Maturity: Jun 15, 2025. Separate companion note issued to Golden Section Holdings, LLC.
JUN 12, 2023
Warrant Issued — 5% FD Shares
Golden Section Holdings, LLC receives warrant to purchase 5% of fully diluted shares at $1.0000/share (409A valuation). 10-year term expiring June 2033.
FEB 2024
Last Reported P&L — $122,713 Revenue
Arcanium Ventures Inc. reports Feb 2024 revenue of $122,713 (Technology Services $121,126 + CXO Services $1,587). Gross profit $87,941. Payroll $54,414. Still generating revenue but operations would cease shortly after.
DEC 2025
Finalized — Written Off
GS Value Tracker confirms status: Finalized. Tier: Red. Company shutdown. ARR CAGR: −1. Total loss: $250,000. MOIC: 0.00x. No recovery expected.
| DETAIL | VALUE |
|---|---|
| Instrument | Convertible Promissory Note FII |
| Investment Date | June 21, 2023 FII |
| Principal | $250,000 USD |
| Cost Basis | $250,000 |
| Current Value | $0 |
| Gain / Loss | −$250,000 |
| Currency | USD |
| Fund % Weight | 0.00% FII |
PORTFOLIO STATUS
Blended Value
$0
$0
MOIC
0.00x
0.00x
ARR CAGR
−1
−1
Tier
Red
Red
PRODUCT & COMPANY
Arcanium Ventures — Technology-Enabled Services
Source: P&L Reports, Credit Memo, Arcanium Fund Summary, GS Value Tracker LP Presentation
Arcanium Ventures Inc. (Delaware C-Corp) operated as a technology-enabled services company through its operating entity Arcanium Software, LLC. The company provided technology staffing, creative services, recruiting services, and fractional CXO consulting to startups and technology companies.
The business model combined technology staffing with a proprietary platform for managing service delivery. Revenue was generated across multiple service lines: Staffing Services, Recruiting Services, Creative Services, and CXO Services (Founders Club subscriptions). The company was led by CEO Miles Aron.
SERVICE LINES (FEB 2024)
Staffing Services ($58,726)
Recruiting Services ($54,400)
Creative Services ($8,000)
CXO / Founders Club ($1,587)
BALANCE SHEET HIGHLIGHTS (DEC 2022)
| ITEM | AMOUNT (USD) |
|---|---|
| Bank Accounts (Cash) | $264,891 BS |
| Accounts Receivable | $84,322 |
| Total Assets | $350,713 |
| Credit Cards | $32,312 |
| Loan from Shareholder | $150,000 |
| Payroll Liabilities | $5,164 |
| Total Liabilities | $187,476 BS |
| Total Equity | $163,236 |
COMPANY DETAILS
CEOMiles Aron
Legal EntityArcanium Ventures Inc.
JurisdictionDelaware C-Corp
Operating EntityArcanium Software, LLC
SectorStartup Tech / TES LP
POST-MORTEM ANALYSIS
Risk Assessment & Write-Off Factors
Source: P&L Reports, Balance Sheet Dec 2022, GSV Fund II Record, GS Value Tracker Dec 2025
HIGH
Services Business Scalability: Despite generating $2.1M in revenue over 15 months, the company operated a labor-intensive services model. Payroll ($865K) and contractors ($610K) consumed 76% of total expenses, leaving thin margins and limited ability to scale without proportional headcount increases.
HIGH
Revenue Sustainability: Monthly revenue was volatile, ranging from $38K to $215K. The services model lacked recurring revenue predictability. ARR CAGR of −1 (per Value Tracker) indicates revenue was declining by the time of write-off.
HIGH
Post-Investment Decline: The convertible note was issued June 2023. The last reported P&L (Feb 2024) showed $122,713 revenue, but the company ceased operations before the June 2025 maturity date. The investment period saw the company fail to transition from services to a scalable product.
HIGH
Shareholder Loan Dependency: A $150,000 shareholder loan on the Dec 2022 balance sheet (43% of total liabilities) indicates the company required insider financing to sustain operations even when generating revenue.
MED
Dual Entity Complexity: Operating as both Arcanium Ventures Inc. (Delaware C-Corp) and Arcanium Software, LLC created structural complexity. Investment went to the C-Corp while revenue operations ran through the LLC.
MED
High Recruiting & Staffing Costs: Recruiting expenses of $47,628 (in the P&L period) plus significant contractor and wage costs suggest constant hiring churn, a sign of operational instability in a services business.
GP RECOMMENDATION
Verdict: EXIT — WRITTEN OFF
Arcanium Ventures has been fully written off. GSV Investors II LP invested $250,000 via a convertible promissory note in June 2023, targeting a technology-enabled services company led by Miles Aron. Despite generating $2.1M in cumulative revenue (Oct 2021–Dec 2022) and maintaining profitability during its early operations, the company failed to sustain revenue growth or transition to a scalable model. The last reported P&L (Feb 2024) showed $122,713 monthly revenue, but operations ceased before the note’s June 2025 maturity. The convertible note was not repaid or converted. GS Value Tracker confirms the company status as Finalized with Red tier. Total loss: $250,000 (MOIC 0.00x). The warrant (5% FD shares at $1.0000) is also worthless. No recovery is expected.
TOTAL INVESTED
$250,000
Convertible Note · Jun 2023
TOTAL LOSS
−$250,000
Complete write-off · MOIC 0.00x
STATUS
Finalized / Shutdown
Red tier · No recovery expected
Prepared by Derek · March 2026 · Sources: GSV Fund II Record (Sep 2025), GS Value Tracker (Dec 2025), Convertible Promissory Note (Jun 2023), Warrant (Jun 2023), Credit Memo (Jul 2023), Arcanium P&L (Oct 2021–Dec 2022), Balance Sheet (Dec 2022), P&L Feb 2024
SOURCE DOCUMENTS
FII GSV Fund II Record — Sep 2025
BL GS Value Tracker F2 Blend — Dec 2025
DPI GS Value Tracker F2 DPI — Dec 2025
LP GS Value Tracker LP Presentation — Dec 2025
CN Convertible Promissory Note — Jun 15, 2023
WC Warrant Certificate — Jun 12, 2023
CM Credit Memo — Jul 12, 2023
PL Profit & Loss — Oct 2021–Dec 2022
BS Balance Sheet — Dec 31, 2022