Angus 2.0

We announced our 2nd deal in four weeks earlier today, joining with Icon Dr. Angus Reid to provide growth capital for his newest success, Vision Critical Communications Inc.

Founded in 2000, Vision Critical develops and operates software and tools that are used to help companies recruit, engage and learn more from their customer advisory panels. The Company generates revenue from two streams:

1) Panel+, a hosted technology platform that enables internet-based polling and surveying using panels rather than ancient call centres; and
2) Fusion, a suite of rich media applications which include interactive visuals, streaming video and 3D virtual environments.

Vision Critical markets its technology-based product to Global 5000 customers in North America and has over 80 customers.

This Angus fellow is amazing. While we often try to imagine what a business would look like without its top dog, this time we didn’t even want to think about it. He sold his polling firm to Ipsos for $100 million half a decade ago, with 70% of the pass going to his delighted investors. While we were comforted that he co-invested with us on this round (Telus Ventures is the only institutional investor other than Wellington), we also know that we’ll regret losing the incremental economics down the road.

The deal didn’t come easy, and Vision Critical’s team (exec Gord Baizley and Chairman Jim Fletcher) did a market check with all of the obvious large domestic venture debt players before signing up with us. They wanted to manage dilution, yet still raise useful growth capital; and that’s the beauty of term venture debt.

Two or three years from now their valuation will be superb, and almost 99% of the Company will still belong to the current investors. And that’s why we are in this business: True growth capital without the dilution you’d often suffer on a Series B venture capital deal.

We are excited about what’s to come. Just wish that they’d give us a discount on our own panel campaign….

MRM