Case Histories

Finding Venture Capital

A founder of a new company was looking to expand his business. He had developed a new technology while working on his Ph.D., formed a company, and licensed the technology to several potential commercial accounts. Yet, as in most start-ups, revenues were lagging behind the expenses required to continue and expand operations. The founder had put together a formal business plan, and was seeking equity to develop a commercial version of the product based on the experience of the company’s current accounts, and to provide the sales and marketing required to ramp up revenues.

The founder contacted Stonewood. In addition to funding a portion of the raise,¬†Stonewood helped¬†the founder raise the right amount of capital required to implement the business plan. We invested along side institutional venture capitalists that provided strategic value to the founder’s company through relationships with potential partners on a global scale. The new company was able to leverage the entire venture capital team for many essential resources, including strategic planning, staffing, and establishing the right information systems, so that the founder could continue to concentrate on making better products.

The New Entrepreneur

The professionals at Stonewood are very interested and active in Pittsburgh area entrepreneurship. We encourage people with big ideas to talk to us about how these ideas might translate into successful businesses. Although we don’t generally provide seed money, we are ready providers of guidance and direction to very early-stage companies, and as these companies move from theory to revenues, we can be a source of capital to stimulate further growth.

A professor in the computer engineering department of a local university had been in contact with Stonewood over the course of several years while he was developing a study of a new software application. When it finally became time to take the concept out of the laboratory, we were well versed in the technology and the potential applications, and we were able to quickly assemble the right investment team to take the new product forward.

As all entrepreneurs know, timing can be critical to the success of a new venture. Even if the time is right for a product, without funding a new company can be left on the sidelines while opportunities slip away. So we encourage people to contact us at an early stage so that we can be there to help when the time is ripe.