Author: Brad Brown

ConvenientMD closes a successful transaction with NYC private equity firm

BBCP announces a strong exit from ConvenientMD, an urgent care startup, via its holdings in Market Square Equity.

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N.Y. firm invests in further ConvenientMD expansion
Urgent care chain plans four more openings through 2018, more in 2019

November 20, 2018

ConvenientMD, the fast-growing, Portsmouth-based chain of urgent care centers, has received what it calls “a significant investment” from a New York investment firm. that will help fuel its continued growth and expansion around the Northeast.

The investment, by Starr Investment Holdings, is expected to help fuel ConvenientMD’s growth and expansion across the Northeast, the companies said.

The financial terms of the investment were not disclosed.

Since its inception in 2012, ConvenientMD has opened 12 locations, with nine in New Hampshire and three in Maine. The company is currently in the process of opening a new urgent care center in Bangor, Maine, followed by an expansion into the Massachusetts market, with clinics in Falmouth, Newburyport and Weymouth scheduled to open before the end of the year.

Additional growth is planned for 2019, officials said.

According to the company’s website, plans are underway to open a new locations in Londonderry, NH, Brunswick, Maine, and in the Massachusetts communities of Quincy and Plainville.

“We’ve developed a unique solution for revolutionizing the patient experience by providing convenient access to expert medical care at affordable rates,” said Gareth Dickens, ConvenientMD’s co-founder and executive chairman.

Navegate Logistics Secures Investment to Fuel Future Growth

BBCP announces its participation in the recapitalization of Navegate Logistics.

MENDOTA HEIGHTS, Minn.–Navegate Logistics, Inc., a tech-forward third-party logistics (3PL) provider, is announcing that it has been recapitalized by Chicago-based Saltspring Capital LLC. Nathan Dey, Saltspring’s Managing Partner, will be joining the Navegate team as CEO and Chairman.

“Navegate presents an amazing opportunity to grow and build on a rich 50 years of logistics history,” said Dey. “This industry is going through a tremendous digitization, and the steps Navegate has proactively taken to position themselves to succeed in the future made the investment very compelling.” The remainder of the company’s existing leadership team, including Joe Pelletier, President, will continue with the company. Chad Bickett, formerly VP of Strategic Initiatives, will also become COO with the transition.

The investment validates and supports Navegate’s plans to build on its existing success as a leader in delivering clients unprecedented supply chain visibility, flexibility and vendor integration. Furthermore, it will continue to grow the company’s business network on both the International and Domestic fronts.

Already a leader in modernizing the logistics industry—consistently making Inbound Logistic’s Top 100 List of IT Providers—Navegate’s long-term vision is to become a one-stop, global trade portal where customers can quote, book and track shipments worldwide.

As a strategic and operationally focused investor, Saltspring brings a strong foundational knowledge in global logistics and a deep bench of partners to accelerate Navegate’s growth. Next Coast Ventures, Relay Investments and the Operand Group also participated in the financing round.

“We are thrilled to be backing an innovative company in Minneapolis—freight forwarding is a massive industry that is ripe for disruption, and Navegate’s product is a prime example of how a full-stack business model can fundamentally change the way a fragmented industry like freight logistics operates,” said Michael Smerklo, co-founder and managing director of Next Coast Ventures. “We have no doubt that Nathan and Navegate leadership’s deep domain expertise will be the team to scale this incredible platform, and we are so excited to be a part of the next phase of Navegate’s journey alongside a strong group of syndicate partners.”

About Navegate

Navegate offers traditional services such as freight forwarding, customs brokerage and domestic transportation along with innovative, cloud-based software and a best-in-class vendor portal platform.

As part of the investment, Navegate’s asset-based trucking division has been spun off and will be operated as a separate business based in Sioux Falls, South Dakota. Navegate will keep its headquarters in Mendota Heights, Minnesota, and also maintain its offices in Chicago, Los Angeles, Shanghai and Hong Kong.

BBCP Announces Paragon Legal Investment

Bradford Brown Capital Partners announced its investment in Paragon Legal today, through its stake in Calyx Capital LLC.

Paragon Legal Announces Acquisition By Calyx Capital Partners

SAN FRANCISCO–Paragon Legal (“Paragon”), a leading provider of legal resource solutions to corporate legal departments, announces that the Company has received a strategic investment from Calyx Capital Partners (“Calyx”), a private investment fund.

“We look forward to joining the current management team and helping accelerate the growth of Paragon to achieve our goals of expanded opportunities for our employees and additional services for clients.”
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Paragon was founded in 2006 by Mae O’Malley to provide attorneys with a new and innovative way to practice law in a flexible manner, and to allow corporate legal departments to engage high quality talent on an on-demand, project basis. Paragon provides highly-skilled attorneys, contract managers, and paralegals across a multitude of legal practice areas.

“As Paragon has grown tremendously over the years and continues to see high demand for its services, I have decided the time is right to bring in new owners and management who are well-equipped to see Paragon through the next stage of its growth,” says O’Malley. “The Calyx team has deep experience improving and growing organizations, and I am confident that their expertise and enthusiasm are just what Paragon needs at this stage in its growth.”

Trista Engel and Jessica Markowitz from Calyx will join the organization as Managing Directors of Paragon in its San Francisco headquarters. Mae O’Malley will continue as Founder and a member of the newly formed Board of Advisors, which will provide Paragon with added insights and expertise through its decades of experience in legal services.

“We are thrilled to be joining the Paragon team. Paragon’s ability to attract top legal talent, its roster of blue-chip clients, and its unique culture really set the business apart,” says Trista Engel. “We’ve chosen to be a part of Paragon because we see substantial opportunity to create greater value for our clients, and we will be devoting our energy and resources toward delivering the best client and attorney experience.”

Jessica Markowitz adds, “We look forward to joining the current management team and helping accelerate the growth of Paragon to achieve our goals of expanded opportunities for our employees and additional services for clients.”

About Paragon Legal

Paragon Legal (www.paragonlegal.com) is an innovative legal services firm that provides highly-skilled legal professionals to corporate legal departments on an on-demand, project basis. Since 2006, Paragon has established itself as a leading legal services partner to top tier companies in the Bay Area, providing flexible, cost-effective legal resources to meet each company’s unique needs. Paragon’s industry-changing model allows legal professionals the opportunity to continue with challenging legal work while maintaining flexibility and control over their schedules.

Early, Attractive Zensurance Exit

Bradford Brown Capital Partners announced its exit from Zensurance today, as the company sold a majority stake to a strategic buyer at attractive terms for all early investors.

Travelers, one of America’s largest insurance companies, has acquired a majority stake in the Canadian fintech startup Zensurance.

According to documents obtained by BetaKit, The Travelers Companies – through a wholly-owned subsidiary – has purchased approximately 60% of Zensurance’s issued and outstanding shares, leaving Zensurance CEO Danish Yusuf and CTO Sultan Mehrabi with about a third of ownership in the company.

Sources close to the matter have revealed that Travelers paid approximately CA$16 million (about $12,250,000) for the deal.

Zensurance aids businesses in the purchase and management of insurance packages through its proprietary platform. Over 2,500 businesses have signed on with Zensurance, and the startup works with more than 40 insurers.

Currently, Zensurance is operating independently of Travelers. Speaking with BetaKit, both Yusuf and Mehrabi confirmed that the fintech remains unfazed by the acquisition – in fact, the fintech aims to continue working with even more insurance companies. Zensurance is also looking to secure the authority to bind insurance contracts in real-time through its platform, instead of relying on insurance companies to complete the process.

In terms of commercial property insurance, Travelers is the second largest company in the US. The company is also the second largest writer of personal insurance in America, through independent agents.

Investor and Advisor to OneVision Resources

BBCP is pleased to be an outside investor and also advisor to OneVision Resources, the leader in the emerging Smart Home Servicing segment.

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Discussions on the Smart Home often center around how quickly the mass market will evolve, given the plethora of devices and companies.

Yet, there already is a large and growing Smart Home base at the high end of the housing market. Every large, expensive new home continues to be designed and outfitted with complex technology:

· media rooms,
· distributed audio,
· distributed video,
· lighting control,
· climate control, and
· sometimes, whole house automation

There are 2 million+ high end installations in this market, with another 3-400,000 installations annually. Most are using single vendor solutions from providers few people have heard of, e.g, Control4 (IPO’d, market cap $650M). Most are using one of 8,000+ independent integrators or dealers to install their system. These systems can range from $50k to $500k, with cat5 wiring throughout the house, and a rack of servers in the basement. Smart homes are here!

Of course, the problem is that sometimes these systems crash or get hung or stop working, like our complicated computer systems at work.

And there is no service plan, and service model. The main approach for service is to call the installers cell phone. Obviously, this support model grows old very quickly for both parties; installers get interrupted in the evening and have to scramble while the homeowner get poor service over time.

The future service model will emerge in a sensible way, like it has for other sectors like home security. At the time of sale, or shortly thereafter, the homeowner should buy an affordable service plan that gives him an 800 number to call 24/7. On the other end of that phone, should be an experienced technician who can resolve most problems remotely. And for an extra fee, this technician will install a device in the home to monitor how the tech is performing, and make proactive fixes before the homeowners even realizes he has an issue.

This is the future of Smart Home Service, and the leading player is OneVision Resources. They handle the service headache for the installer, by providing high quality service to the homeowner. They charge the installer per incident to handle the headache of Tier 1 support, and they offer the homeowner a preferred service membership. With almost 100 integrator partners, OneVision is growing rapidly and building the Smart Home Service industry. Over the next 2-3 years, we anticipate continued growth in partnerships and membership, as OneVision scales a well-proven business model.

For more on trends and opportunities in the small-cap space, see our recent linked article on 5 Small-Cap Observations for Large-Cap CIOs

BBCP Announces Investment and Board Seat in Cloud X Partners

BBCP Announces Investment in Cloud X

Cloud X Partners, including its Insynq and CloudRunner product lines, has announced that it has secured an undisclosed amount in new funding to support its accelerated growth and the increasing demand in the small and medium business (SMB) cloud computing space, with a heavy existing presence and continued focus on the Accounting vertical.

According to CEO Elliot Luchansky and Chairman Craig Jones, this round of capital was oversubscribed from within the existing group of 26 investors, which includes a mix of institutions, family offices, and high net worth individuals. However, there was space set aside in the financing round for a newly appointed member of CXP’s Board of Directors, Brad Brown. “We were excited by CXP’s growing core Insynq business, and the fact that it is poised for much faster growth from CloudRunner.

“We are pleased to welcome Brad Brown to our Board of Directors bringing decades of technology experience to the Company.” said Craig Jones Managing Partner at one of CXP’s limited partners Ticonderoga Private Equity, and Chairman of CXP’s Board of Directors.

“Desktop-as-a-Service (DaaS) meets a real and immediate need among small businesses” said Mr. Brown. Brad Brown is the Managing Director of Bradford Brown Capital Partners. He has over a dozen years of experience in small cap growth investing, and has acquired over 30 operating companies is a private investment; he now sits on the Board of Directors for 5 of these companies, including Cloud X. Mr. Brown also recently retired from his role as a Senior Partner Emeritus of McKinsey & Company, the world’s leading consultancy. For 18 years, he was a senior member of the Digital Technology practice, and recently the global leader of the Big Data practice. Brad joins Craig Jones (invested personally and as Managing Partner of Ticonderoga Private Equity), M-K O’Connell (invested through M20), Dustin Sellers (Managing Partner of KOA Capital Partners), and CEO Elliot Luchansky.

CXP’s CloudRunner platform combines software-as-a-service, desktop applications hosted in the cloud, and cloud hosting to provide virtual workspace environments for small and mid-market enterprises (SMEs). Through an easy-to-use portal, employees can access their accounting, financial, and other business applications – such as QuickBooks and Sage – in addition to their data and files from anywhere at any time on any device. CloudRunner’s new platform represents more of an ecosystem geared towards accountants and bookkeepers, which is being developed as part of the CXP’s partnership with an undisclosed party expected to be formally announced in January.

“CXP’s funding demonstrates a growing appetite among institutional investors to enter the SME and professional services cloud computing space,” said Elliot Luchansky, CEO of Cloud X and CloudRunner. This movement is evidenced by Providence Equity-backed Abacus Next’s series of accounting and customer relationship management software provider acquisitions earlier this year, and BV Investment Partners’ recapitalization of accounting solutions provider Right Networks last September followed by Right Networks’ recent add-on acquisition of Xcentric.

CXP provides a world class cloud accounting experience for financial executives and accountants. The Company provides simplicity and service for a profession that contains heavy software uses. Our growth has accelerated and the additional capital will help us grow even faster.

CXP will use the recent funding to advance strategic growth priorities laid out by its leadership team:

1) Accelerate the development and subsequent adoption of the CloudRunner platform

2) Further invest in developing the Insynq Desktop-as-a-Service (DaaS) product

3) Ramp up sales & marketing efforts associated with both Insynq and CloudRunner

CXP is the parent company of Insynq, the first organization to offer Intuit’s QuickBooks software in a cloud environment nearly 20 years ago. This prescient move prompted the formal development of Intuit’s authorized hosting program, indelibly changing the way in which accountants, business advisers, and bookkeepers interact with their clients’ financial reporting processes. Insynq continues to pioneer innovation in cloud computing technology, with an emphasis on automation and simplicity using CloudRunner platform-based software.

Workplace Answers produces strong exit in sale to EVERFI

(April 20, 2017) – Today, EVERFI, Inc., the nation’s leading education technology innovator, announced the acquisition of online compliance training company Workplace Answers. The acquisition expands EVERFI’s commitment to solving complex prevention and workforce challenges through interactive, scalable education solutions.

“Nearly a decade ago, EVERFI was founded on the conviction that we could harness innovative, digital education to engage learners on the largest and most intractable social issues of our times – from financial education and diversity, to sexual assault and harassment prevention,” said EVERFI CEO Tom Davidson. “By bringing Workplace Answers into the EVERFI Network we have become the world’s largest company committed to empowering learners at every stage of their lives, from the classroom to the boardroom.”

The acquisition of Workplace Answers, also includes their Campus Answers brand, which provides faculty and staff training around critical campus issues like sexual harassment prevention training. The combined company will now serve over 1,700 campuses and provide them access to the Campus Prevention Network, a nationwide initiative committed to creating safer, healthier communities. Through the Campus Prevention Network, schools across the country will take a pledge to adopt the highest standards of prevention related to critical health and safety challenges, including sexual assault and alcohol abuse, and to assess the progress and impact of their efforts.

“Workplace Answers and EVERFI share the same philosophy of engaging the learner and putting the customer at the center of product innovation,” said Girish Pashilkar, CEO of Workplace Answers, LLC. “As we considered growth strategies for Workplace Answers, I felt confident that being acquired by EVERFI would allow us to significantly amplify our impact in critical areas such as preventing corruption, discrimination and sexual violence. Additionally, EVERFI’s inclusive and purpose-driven culture would continue to provide a thriving work environment for our talented employees.”

“Through the Campus Prevention Network, EVERFI is creating a powerful community dedicated to using evidence-based best practices, data, and scalable training to take on some of the toughest challenges facing colleges and universities,” said Preston Clark, President of EverFi’s Higher Education and Corporate Compliance divisions. “The addition of Workplace Answers reaffirms our commitment to support schools and companies in this important work, and accelerates the incredible momentum driving progress across the country.”

About EVERFI

EVERFI is the leading education technology company that provides learners of all ages education for the real world, through innovative and scalable digital learning. Founded in 2008, EVERFI is fueled by its Software-as-a-Service (SaaS) subscription model and has certified over 16 million learners in critical skill areas. Some of America’s leading CEOs and venture capital firms are EVERFI investors including ReThink, Advance Publications, Amazon founder and CEO Jeff Bezos, Twitter founder Evan Williams, and Google Chairman Eric Schmidt. The EVERFI Education Network powers more than 4,200 customers in their education initiatives across all 50 states and Canada. Learn more at EVERFI.com

One, Inc. Raises Series B Led by AXA Strategic Ventures

Bradford Brown Capital Partners LLC participated in the latest funding to accelerate and expand One, Inc.’s vision of transforming the insurance software market

December 14, 2016
Folsom, California

One, Inc., provider of a SaaS operating system for insurance companies, today announced that it has raised $20 million in Series B funding led by AXA Strategic Ventures (ASV) with participation from MassMutual Ventures and current investor H&Q Asia Pacific. This round marks ASV’s first growth equity investment. The additional capital builds on the company’s $16.7M Series A round in 2014, bringing the total investment to $36.7M.

This investment comes at a time when One, Inc. is experiencing tremendous growth. For the past three years, the company’s revenue has tripled each year and its customer base has nearly quadrupled. One, Inc. plans to use the additional capital to further develop its SaaS platform, add products and lines of business and expand globally.

“One, Inc. is leading the modernization of the insurance software market by offering a nimble, cost-effective solution that can be installed quickly and is continuously updated to ensure that customers always benefit from the latest features,” said Alex Scherbakovsky, General Partner at AXA Strategic Ventures. “This investment reflects our confidence in the strength of One, Inc.’s management team and the company’s next-generation SaaS technology platform.”

One, Inc.’s suite of software applications is the industry’s leading comprehensive SaaS insurance platform that provides all the core functions needed by insurance carriers and managing general agencies. One, Inc.’s platform includes policy administration, billing, rating, agency management, customer relationship management, document management, payment processing, digital engagement, IVR, data warehousing and business intelligence, esignature, as well as many other functions essential to insurance companies. One, Inc. also helps carriers bring new offerings to market more quickly, empowering them to go live with all of their core applications in months rather than years. With a perfect customer implementation track record, One, Inc. has proven that the largest and most complex on-premise core systems can easily migrate to the cloud.

“Insurance carriers are facing significant challenges in this continually evolving landscape,” said Doug Russell, managing director, MassMutual Ventures. “One, Inc.’s integrated product mix, which includes everything from core systems to payments to distribution management, has the company well-positioned to help solve those day-to-day and long-term issues. We are pleased to have made this investment and are excited about One Inc.’s future.”

“One, Inc. continues to impress us with the way they execute and how they are disrupting the market with flexible and modern solutions,” said Dr. Ta-lin Hsu, Founder and Chairman of H&Q Asia Pacific. “We’re excited to further our investment in One, Inc. and to have AXA Strategic Ventures and MassMutual Ventures as part of the team. We look forward to working closely with them.“

“The shift happening in the insurance industry is still in its early stages and the opportunity to redefine how insurance companies approach technology and interact with their customers is tremendous,” said One, Inc. CEO and founder Christopher W. Ewing. “AXA Strategic Ventures, MassMutual Ventures and H&Q Asia Pacific share our values and vision for the future of the insurance industry. We are eager to collaborate with them and move our business forward significantly.”

ABOUT ONE, INC.
One, Inc. provides an integrated cloud-based platform designed to transform the way insurance companies interact with their customers. One, Inc.’s technology platform combines core insurance software functions including policy administration, rating and billing with data analytics, CRM, payment processing and agency management—all in one solution—to enable insurance companies to modernize their operations and offer superior solutions and service to their customers. For more information, please visit www.oneincsystems.com

Blue Sky Network acquired by search fund Kerwood Capital

October 17, 2016 — Bradford Brown Capital Partners LLC today announced the acquisition of Blue Sky Network (“BSN”) with search fund entrepreneurs, Kambiz Aghili and Greg Demory of Kerwood Capital.  BSN, based in San Diego, was founded in 2001 and provides uninterrupted, real-time remote asset tracking solutions using the Iridium satellite network for fixed wing, marine, rotary wing and the land/mobile markets.  The company offers proprietary, FAA-certified (Tier I Iridium, GSM) standalone hardware along with a cloud-based, multi-platform fleet management software portal.

Search fund Valent Capital acquires ISI Telemanagement Solutions, Inc.

ISI Telemanagement Solutions, LLC announced that it has sold a controlling interest to search fund Valent Capital Partners, LLC. “ISI is well served by this transaction,” said Michelle Moreno, Chief Financial Analyst, Managing Director, Dresner Partners. “Valent Capital Partners will invest in ISI’s continued growth, both organically and through partnerships and acquisitions, to serve the ever increasing needs to deliver unified communications solutions.”

 

http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapid=9776753

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