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.

Resources

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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

The Benefits of Hiring a Fractional CFO During a Recession 

In today's competitive business landscape, it's essential to have a strong financial strategy in place to maximize growth and profitability. A fractional CFO can provide the expertise and guidance necessary to achieve these goals without the expense of a full-time CFO. By outsourcing your financial management to a fractional CFO, you can access top-tier talent, gain valuable insights into your business's financial health, and make informed decisions that drive long-term success. With their expertise in financial planning, budgeting, forecasting, and reporting, a fractional CFO can help your business navigate complex financial challenges and achieve sustainable growth. So, if you want to take your business to the next level, consider hiring a fractional CFO to help you achieve your financial goals.

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The beginning of the new year is a popular time for personal and professional resolutions.  As a business owner and operator, now is the best time to set the strategic vision for your firm and its employees to follow for the year.  If you’re not sure where to start, we’ve compiled a checklist of seven topics that you can use for inspiration

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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.

Board & Shareholder Materials & Communication

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Financial Reporting

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Capture CEO Steve Huey

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.

—Steve Huey, CEO

capture

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