Source: Nick Hammerschlag, OpenView Partners Over the last year, I have found that entrepreneurs contemplating taking on expansion stage venture capital are almost universally concerned with the certainty of deal consummation after signing a term sheet. Here at OpenView, we aim to fund 100% of the companies with which we sign term sheets and complete […]
6 Reasons Why Venture Capital Deals Fall Apart Read More »
Source: Ed Mathers, Partner, NEA with WRAL Tech Wire It’s no secret that the flow of capital into the life sciences industry has slowed to a trickle over the last several years. The number of funds being raised continues to decline, with only a handful of firms raising fresh funds in the past two years
Life Science Startups Look to New Sources of Funding Read More »
Source: PitchBook Venture capital (VC) deals steal most of the media attention, but in VC circles much of the recent discussion about the industry has centered on the topic of fundraising. Everyone knows that capital is the lifeblood of startups, but it also plays a similarly crucial role for VC funds. Unlike their counterparts on
2013 Venture Capital Fundraising Update Read More »
Startups Can’t Borrow Their Way to Success Source: Adeo Ressi, Founder of the Founder Institute and TheFunded.com. Over the past few years, Founders and investors alike have flocked to convertible debt, loaning billions of dollars per year to insolvent startups. The great irony according to debt settlement companies is that nobody expects this debt to
“Convertible Equity” – Alternative to Convertible Debt for Startups Read More »
Source: Angel Resource InstituteNotes based on late 2012 trends: Median Angel Round Size Hit Five Quarter High: In Q3 2012, the median size of angel & angel group syndicate rounds reaches $640K, the highest in the five quarters the data has been tracked. Early Stage Valuations Remain Stable: The median pre-money valuation for early stage
Angel Investing Trends Read More »
Source: Nick Hammerschlag, OpenView Partners Venture capital due diligence processes can be frustrating for both VCs and entrepreneurs alike, particularly with later-stage companies as there is more information to sift through. I’ve found that — largely — this frustration results from poorly managed expectations. Investors often fail to manage entrepreneurs’ expectations with regard to timeline
VC Due Diligence Post Term Sheet Read More »
Source: Scott Maxwell, OpenView Partners Need capital to start or build your business? Ever try to figure out who the best fit VC is for you? In my view, the absolute best way for you to get the capital to build your business is to get your capital from your customers in the form of
The #1 VC in the World – Customers Read More »
Source: Merrette Moore, Lookout Capital As any of my business colleagues will tell you, I’m not a “see and be seen” guy. People who like to see and be seen go to networking events. People who like to produce concentrate on getting things done. I like to get things done. That being said, I understand
NC Startup Landscape is Changing Read More »
Source: DEBORAH GAGE, Wall Street Journal It looks so easy from the outside. An entrepreneur with a hot technology and venture-capital funding becomes a billionaire in his 20s. But now there is evidence that venture-backed start-ups fail at far higher numbers than the rate the industry usually cites. About three-quarters of venture-backed firms in the
The Venture Capital Secret – 75% of Startups Fail Read More »
See http://www.bloomberg.com/video/92249035/ for six minute on-air discussion with the Kauffman Foundation’s Harold Bradley and Tangent Capital Partners’ Bob Rice about the ongoing contraction in venture capital, what’s widely recognized as broken in the traditional model, historical returns at industry level, the implications of fund size, tensions and pricing negotiations with limited partners, and the outlook
Venture Capital: A Good or Bad Investment? Read More »
Graf Research™ unleashes innovation by developing ideas into disruptive technologies. The Graf mission aims to perform research, provide services, apply analytics, and create products that enable secure, high-performance, embedded, and adaptive computing solutions.
When the Director of Finance for Graf was leaving the company, Graf needed an experienced financial team to get them through the transition. Managing Director Gary Hayes was introduced to Graf and determined that CFO Rendy Richards and Controller John Schefke would be an ideal combination. These two were particularly important because Graf is a U.S. Government contractor, and both Richards and Schefke have strong backgrounds and deep skill sets in this industry.
The two Scale Finance professionals quickly responded to Graf’s time-sensitive need, logically split up the work, learned the DELTEK version used by Graf, introduced more efficient processes and techniques, and helped meet their financial reporting needs. Our professionals also determined that the Senior Staff Accountant was underutilized and helped her grow into a permanent, cost-effective Controller role.
FX HedgePool (FXHP)
FX HedgePool (FXHP) is a New York and London-based highly innovative fintech company. FXHP is an award-winning peer-to-peer matching platform that optimizes the FX swaps market. The Company eliminates market impact and minimizes the effects of volatility – significantly improving outcomes for all investors.
FXHP’s unique credit model separates liquidity from credit, creating a new source of safe and dependable liquidity for the swaps market. The Company exists for the community, guided by the community with a “win-win-win” commitment that helps members, underlying investors, and banks yield safer and better results.
Scale Finance began serving FXHP years ago, providing annual business valuations to support 409A compliance for the Company’s management incentive equity plan. During this period, Scale Finance Managing Director Dave Gilroy advised FXHP about potential strategic corporate transactions. In 2022, the Company decided to raise institutional venture capital. Scale Finance managed this process from end to end, resulting in a highly successful closing of an $8 million Series A equity financing led by Information Venture Partners with participation from Fidelity International Strategic Ventures and NAventures (National Bank of Canada’s corporate venture capital arm).
Scale Finance continues to provide periodic business valuation support.
Heritage Trust
As the first independent trust company in New Mexico, established in 1994, Heritage Trust (HT) uses innovation, experience, and flexibility to meet clients’ needs. HT provides a full range of trust services, e.g., acting as their client fiduciary for their Trust assets, being an executor or personal representative related to the distribution of estate assets, managing and growing financial assets, and preparing annual tax returns for trusted clients.
Co-Founder and Managing Director of Scale Finance Gary Hayes has been providing CFO and managing Controller support since February 2021. We have streamlined their monthly and year-end close process and established budget/forecast capability to support management. Their business has grown over 40% since Scale Finance has been involved with the company’s financial management. Gary has also participated in Board Meetings as and when needed.
Southland Transportation Company
Southland Transportation provides transport, supply chain, and campus management services on a local, regional, and nationwide basis. When Southland contacted Scale Finance, they had a strong accounting staff but no Controller or CFO. After an unsuccessful search for a full-time CFO, Southland engaged CFO and Partner Rendy Richards as their fractional CFO.
Over 18 months, Richards helped integrate a new acquisition, made improvements in accounting and finance processes, developed the company’s first-ever annual budget, helped with the onboarding of a new Controller, and provided business valuations in conjunction with Scale Finance’s Managing Director, Dave Gilroy.
For over six decades, Cooper Electrical has served a wide range of industrial, commercial, and municipal customers across the Southeast, providing best-in-class Electrical Design/Build, BIM, Prefabrication, Instrumentation & Controls, and Calibration services. Cooper’s expertise spans multiple major markets, including bio-pharmaceutical, chemical, water & wastewater, power generation, manufacturing, gas production & transmission, and food & beverage.
When Cooper’s CFO left the company for another opportunity, the owners engaged Rendy Richards as interim CFO while they searched for a full-time replacement. On a half-time basis over eight months, Richards kept the company’s financial organization humming, made improvements in several business processes, initiated a detailed financial forecast, and met with the owners to share his observations and recommendations on the most feasible way to staff their finance and accounting department cost-effectively.
SymmetryRX, LLC
SymmetryRX is a leading provider of eSampling services allowing Pharma Manufacturing companies to access physician practices for the ordering and distribution of drug samples across the US. The Company was acquired in November 2018 from Aptus Health, a wholly-owned subsidiary of Merck. Since then, the company has expanded its robust suite of services that provides pharma manufacturing executives, brand managers, sales managers, product managers, and launch managers the ability to help more patients have greater access to samples, improving medication adherence and healthcare outcomes.
Co-Founder and Managing Director of Scale Finance Gary Hayes has been providing CFO Services to the Company since 2018 and was integral in the acquisition process, facilitated initial financing to support the company with a 7A SBA loan package of $600 thousand and an SBA-backed $300 thousand LOC. Since then, Gary has been actively providing CFO support across financial reporting, budgeting, forecasting, cash planning, and strategic planning.
