Working with Friends

Last week I wrote about the value of repeat relationships in the venture capital and private equity business. I used the example of a portfolio company that recently raised capital from a firm we have worked with on a repeat-basis. I intentionally left out the investor’s name as well as the companies knowing that this new investor wanted to more formally announce their investment after labor day.

Well… today, Intel Capital announced a significant investment in Meritage portfolio company IP Commerce. A couple of years ago, Intel joined our syndicate at Crisp Media. Our work there – at the Board and investor levels – has been constructive and collaborative. Crisp is better for it.

I’m excited that Intel has decided to join us at IP Commerce. Special recognition goes to Bavanipratap Rana and Vibhor Rastogi who spearheaded Intel’s work on the transaction. Both worked effectively and collaboratively on the financing all the while doing their jobs by protecting Intel’s interest. We won a few points to, but that is how it should be. In the end, IP Commerce gets more capital, a new supportive investor with lots of leverage points and another effective voice at the table to help the company navigate the huge opportunity it is pursuing.

Some might believe that corporate VC’s like Intel Capital are somehow lesser VC-lifeforms. That has not been my experience. I’d gladly have Intel join the syndicate at any of my companies. Welcome to the team guys and congratulations to IP Commerce for successfully completing this financing. On and up!

Derek Pilling is a Managing Director at Meritage Funds, a growth equity firm. Derek invests in technology-enabled services businesses in the Internet Infrastructure, Cloud Computing, Digital Media and SaaS sectors.Derek lives in Denver with his wife and his three children. In his spare time, Derek enjoys coaching youth soccer, skiing, hiking, spinning and hopping on his rowing machine in the morning.

Posted in Payments, Portfolio
Derek Pilling

About Derek

I'm a Managing Director with Meritage Funds, a growth equity investment firm based in Denver, CO. I've been working with growth stage businesses my entire career. When I'm not working, I ski, spin, coach youth sports and spend time with my beautiful wife and three kids.

I blog because the process helps me crystalize how I frame the world. I want to hear what you think. Please comment.

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