Download now Free registration required
As a venture capitalist, it pays to be flexible when considering how to maximize your investment in a high-tech company. Since the technological corrections, many of the venture capital firms that backed Canada's tech companies have struggled to recapture the full value of their investments. A likely scenario for companies when they invest in a promising technology that just can't make the leap to the next level would be them exiting from technology investments, even successful ones. This can turn out to be challenging. Consider the case of Kaval Wireless, a privately owned tech company based in Markham, Ontario. Kaval provides in-building wireless solutions. Its technology enables wireless coverage within buildings, tunnels and underground facilities-anywhere cellular, paging and two-way radio connections are fragile. Incorporated in 1986, the company was backed by over $30 million in venture funding from several investors. Deloitte's approach is simple; it develops the best growth strategy, and then explores all the options including the tough ones. Technology companies, and the venture capitalists that invest in them, require unique solutions when growing their business to the next level. In Kaval's case, the situation was complicated by the tech correction, after which capital for technology companies dried up. When Kaval first asked Deloitte for help, it was to raise capital on the public markets. By the end, it had changed from a public offering to a sale transaction. Sometimes the solution may not be obvious, so one has to be flexible and creative. With this kind of complexity, the Kaval transaction required Deloitte to use our global network to find the right buyer.
- Format: HTML
- Size: 0 KB