Going long the Social Software space

What a nice time of year to have been doing due dili on a story in California. Sadly, I missed out and Mark Usher and some of our colleagues had the pleasure of finding and closing today’s US$6 million venture debt financing for a Silicon Valley-based provider of social software and services. The company supports a number of Fortune 1000 Companies, and its existing investor base includes several big name venture capital firms located in Silicon Valley.

Think communication and interactive tools for the enterprise. According to Wikipedia: “Communication tools typically handle the capturing, storing and presentation of communication, usually written but increasingly including audio and video as well. Interactive tools handle mediated interactions between a pair or group of users. They focus on establishing and maintaining a connection among users, facilitating the mechanics of conversation and talk.”

The U.S. market continues to embrace our non-amortizing venture debt (aka “True Growth Capital”). And, despite what you might have heard (see prior post “One man’s “competition” is another’s opportunity” July 18-11), terms and conditions remain consistent with market norms. The commercial banks are still keen on asset-backed revolvers, leaving the “growthy” lending to us.

If you’ve got a great deal, our dance card always has room. We’ll eventually need to get around to raising our Fund IV, but for now, there’s still room left in our 2006 vintage $450 million lending program.

MRM