Editor’s note: Profiles of venture capital and investment firms is a regular feature in Local Tech Wire. Matthew Burns, Worth Civils and Daniel Pearson compiled the series.
WINSTON-Founded in the midst of the dot-com boom in 1999, Venture Capital Solutions took a cautious stance from the start, favoring more mature companies over startups and more traditional industries to technology.
However, its portfolio does include medical device manufacturer TriVirix International and electrical systems analysis firm Wheatstone Energy.
VCS was formed by Southern Community Bank & Trust of Winston-Salem and obtained a Small Business Investor Corporation license, which gives the firm access to an extra $20 million in U.S. Small Business Administration money in addition to its private $10 million fund. The firm bridges the gap between pure equity funds and bank financing by providing companies with subordinated, mezzanine debt and equity investments.
The firm typically invests between $500,000 and $2 million and prefers its portfolio companies to have annual revenue of at least $3 million and stable earnings and cash flow. In addition to providing growth capital, VCS also looks at investment opportunities in leveraged or management buyouts, financing industry roll-ups, recapitalizations or bridge financing.
Here’s the skinny:
Featured Firm: Venture Capital Solutions, LP
Mailing address: 112 Cambridge Plaza Drive, Winston-Salem, NC 27104
Phone number: (336) 768-9343
R. M. Cobb
Focus of firm: A private mezzanine venture capital fund that invests in the subordinated debt and equity of private, expanding and later-stage companies in traditional industries with experienced, vested management with the ability to expand market share rapidly. Offices in Winston-Salem and Atlanta.
Size of current fund: $10 million
Money under management: $30 million
Mainline Holding Co.
Southern Assisted Living Inc.
The Wheatstone Energy Group Inc.
How many new deals do you expect to fund in 2002: Three to four
In what size range: $1 million to $2 million
Sweet Spot (types of deals, stage of the company): LBO, MBO and acquisitions are of special interest.
Most important attributes for companies seeking funding: Management; earnings history.
What differentiates you: Generalists; traditional industries.
Monday’s profile: Venture First Associates
(Previous profiles can be found by searching the Venture Watch category between Feb. 1 and today.)