Case Study

A High-Tech Recapitalization for a High-Growth Venture

Capture hired Venture First to lead an $8M recapitalization of the company, adding fresh growth capital to Capture’s balance sheet and buying out misaligned investors, who received 7x to 10x on their investment. As a result, Capture was able to reinvest, hire a key industry CRO and jumpstart its sales growth.

The Need

Capture had experienced several years of double-digit growth, but by 2018 it had a problem. Many of its legacy investors were risk-averse and nearing the end of their preferred investment horizon. As a result, they were opposed to raising additional growth capital at a time when it desperately needed the fuel for sales and marketing. Despite its exceptional products, the company slowed its growth to drive cash flows for a conservative investor base.

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The Story

Steve had led Capture from $1M in revenue to $10M when growth began to slow to focus more on profitability than top-line growth.
Their ML & AI enabled software services were providing nearly 100 colleges and universities with recruitment, financial aid and alumni giving services.
New market adjacencies were quickly seeking Capture’s products, but Capture was unable to market these successful stories due to their lack of sales and marketing investments.
By hiring Venture First to structure a deal and lead the investment with a Special Purpose Vehicle (SPV), Steve was able to focus on the internal processes needed to deliver on their growth targets to quickly reach $15M and beyond.

Services Utilized

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Cap Table Management

A capitalization table, often called a cap table, is a detailed spreadsheet that displays all ownership interests of a company. It shows how shareholder’s equity changes over time with different scenarios.

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Venture First helps client companies maintain clear communication with their investors and board members.

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The business valuation practice within Venture First supports and reinforces our core competency as an integrated service provider to businesses in all phases of the entrepreneurial life cycle.

Financial Reporting Valuations

Venture First brings decades of finance and accounting expertise to support valuations for financial reporting.

The investment team at Venture First is among the most experienced in our region. They were able to structure a deal that made sense for new investors, delivered a great return for early investors, and provided our company with the capital it needed to maintain its growth.

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