Apex Investment Partners

Powerful Essays
Introduction:
Apex Investment Partners was founded in 1987 by James A. Johnson and the First Analysis Corporation. In its eight-year life, the VC had raised three funds. The two first which are already closed had, together, a committed capital of around $70M. There were mainly concentrated in four areas: • • • • Telecommunication, information technology and software. Environmental and industrial productivity-related technologies. Consumer products and specialty retail. Health-care and related technologies.

Usually, Apex sought to be the leading investor whatever the stage in order to have one of its representatives join the board of the financed companies. Furthermore, Apex pursues to balance its investments between start-up and already generating positive cash flows investments. Now (April 1995) in the process of raising its third fund of $75M committed capital target, the VC fund seeks for new opportunities on the market. In this context, they recently approached a firm which seems to have huge potential for rapid growth: AccessLine Technologies. Based in Washington, AccessLine is an emerging telecommunication company that developed a high differentiation service called “One Person, One Number”. Basically, the concept is to assign one single number (an AccessLine number) which allows an individual to manage all of their different telecommunications. Realizing that it was less risky and far more costeffective to license their technology, the company extensively use strategic alliances with well-establish operators to commercialize its technology. To pursue its fast expansion, the firm undertook, in July 1994, a $15.5M private placement from five investors and welcomed to the board, as part of the transaction, a representative of the first financing round. To keep up with its ambitions and meet its growth expectations (subscribers increase by 200% per year between 1995 and 1999), AccessLine wish to obtain an additional financing of approximately $16M. Even

You May Also Find These Documents Helpful

  • Good Essays

    Apex Investment Partners

    • 805 Words
    • 4 Pages

    1. Why does Apex find AccessLine to be an attractive investment? What are the risks? Basically, Apex was attracted by the new technology and the unique business model of AccessLine. And, it was at the early stage and was not invested heavily by other professional investors. The positive cash flow was an important factor that makes Apex felt confident. It means that the market actually existed and customers understand the concept of technology, reducing the entry risk. With the domain knowledge…

    • 805 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Apex Investment

    • 344 Words
    • 2 Pages

    own company name. AccessLine also developed partnerships with equipment manufacturers such as Stratus Computer and Motorola, also providing them with a franchise in exchange for funding. However AccessLine’s growth prompted the need for larger investments. Thus, in 1994, AccessLine diversified their financing to professional equity investors. Providing funding worth $15.5 million, AccessLine’s CFO Bill Stuart, and Morgan Stanley’s Bill Brady executed the transaction, involving the private placement…

    • 344 Words
    • 2 Pages
    Good Essays
  • Better Essays

    MEMORANDUM To Apex Investment Partners: According to my analysis of the Accessline’s proposed term sheet, I do not believe that Apex would serve its own interests, or those of its investing partners, by investing in Accessline according to the terms proposed. By investing at the proposed valuation, according to the proposed control and incentive structure, Apex would be shouldering a disproportionate share of the risk should Accessline fail to meet its performance targets, or require…

    • 981 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Apex Chemical

    • 1031 Words
    • 3 Pages

    Apex is a medium-sized chemical manufacturer with annual sales of $60 million that must make a crucial decision on how to allocate its limited resources. These types of decisions often occur during the S&OP process and are made using product data, market analysis, risk tolerance, culture, and a little bit of luck. However, making long-term investments based on luck is not a business plan I would be comfortable with. Fortunately for the Executives at the Apex Company they can assess potential business…

    • 1031 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    apex 1.5.3

    • 370 Words
    • 2 Pages

    10/17/13 acecontent.apexlearning.com/Live/online/english_I_sem_1_hc/Unit_2/Lesson_5/Activity_3229/printables/Test343783.htm 2.5.3 Test (TS): The Short Story: Character English I Sem 1 (S2154404) Points possible: 50 Test Kayla Rae Soncini Date: ____________ Student Assignment Choose one of the following questions and write an essay including a short introduction, a body paragraph, and a short conclusion. If you’d like help, you can use the writing process guide, or you can go straight…

    • 370 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Apex Case Study

    • 644 Words
    • 3 Pages

    Given the limited information in this case, which product would you recommend that Apex commercialize? Why? I would recommend that Apex commercialize Compound B-227. First, there is a much larger market size and future growth potential with B-227 at $40 Million and climbing vs. A-115 which is at $10 million and relatively flat and stable. This means that even if Apex tried to innovate with A-115 and theoretically captured 100% of the market, which is not likely considering they would be competing…

    • 644 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Apex Case Study

    • 610 Words
    • 3 Pages

    Given the limited information in this case, which product would you recommend that Apex commercialize? Why? Apex, a chemical manufacturer, has the option of commercializing one of its compounds due to resource scarcity. Apex needs to examine both choices and take into consideration the analysis of market size and trend, value proposition, market knowledge and share, and forecasted revenue for each of the compound before it decides which compound to commercialize. Compound A-115: The first…

    • 610 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Apex Door Company

    • 1519 Words
    • 7 Pages

    employee strengths and weaknesses assists the development of an effective training program. Teaching employees how communicate effectively enhances the work environment because there is no longer a difference between expectations and achievement. Apex Door has hired us to generate a training program. This proposal suggests specific improvements to the existing training process. TRAINING DEVELOPMENT PROCESS By understanding the organizational needs not individual, development of the training…

    • 1519 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Hotel and Apex Chandigarh

    • 4427 Words
    • 18 Pages

    and perseverance. In my three months of internship at THE APEX CHANDIGARH; I have learned a lot about operations, administration, marketing and the people working behind the scenes to make THE APEX CHANDIGARH Hotel a rapidly growing hotel. I would like to convey my heartiest gratitude to several people, for their support and guidance which helped me complete my summer internship. First and foremost I would like to thank THE APEX CHANDIGARH for giving me an opportunity to do my internship…

    • 4427 Words
    • 18 Pages
    Good Essays
  • Powerful Essays

    Apex american lit

    • 1633 Words
    • 6 Pages

    2.3.8 Practice: Analysis Essay: Independence and Constitutions Practice Assignment English III (2013) Sem 1 (S2605467) Ashley Heaton Points possible: 50 Date: ____________ Assignment Write a literary analysis essay of the U.S. Constitution. Focus on how the Constitution provides liberty for American citizens. Use quotations from the Constitution to support your points. If you choose, you can compare or contrast the U.S. Constitution with the Haudenosaunee Great Law of Peace (the Iroquois…

    • 1633 Words
    • 6 Pages
    Powerful Essays