The ECAP Philosophy & Approach
Envision Capital (ECAP), a mid-stage venture capital firm and integral part of the Envision ecosystem, invests in established companies with revenues between $2mm and $8mm. Portfolio companies benefit from Envision’s organizational and operational expertise to accelerate the growth of their enterprise.
ECAP was established to provide business diversification and introduce a secondary growth vehicle for Envision, offer a level of consulting sophistication to our portfolio businesses that they would not otherwise be able to afford, and build wealth and create opportunities for our employees through the investment positions taken.
Utilizing a disciplined and selective approach, ECAP looks to invest in enterprises already making money. More specifically, we select businesses based on our belief in, and strength of, the leadership team (especially the CEO), seek opportunities that yield a minimum return of 100% on our principle in 2-4 years, and look for equity stakes in companies which seek our active input and ongoing consultative support, including Board Membership.
As part of ECAP’s ongoing deal flow analysis, on December 19, 2012 ECAP announced it had taken a minority equity stake in FTTH Communications, LLC. FTTH (Fiber To The Home) is a facilities-based fiber optic network that provides video, telephone and ultra high-speed Internet services to residential customers in Rosemount and Albertville, Minn.
Utilizing ECAP’s guiding investment principles, FTTH was selected for several key reasons. After a thorough market and industry analysis, fiber optic was deemed a far superior technology when compared to DSL and cable, and FTTH was viewed as a leading provider of this solution in this growing market. This fact combined with the turnaround in the local housing market in Rosemount and Albertville made FTTH a very appealing investment.
The capital infusion into FTTH was used to fund network expansion and upgrades to allow the company to reach more homes. As FTTH CEO Jeffrey Feldman stated, “We’re excited to have Envision Capital invest in FTTH. The firm is bringing more than money to the table — its strategic input and support will be leveraged as we move ahead together. Envision is putting its money where its mouth is, and we welcome the partnership.”
ECAP…private equity with a twist
Adhering to it’s core investment philosophy and principles for portfolio management, ECAP announced it had fully liquidated its position in the company at the end of July 2104 after a very successful partnership which yielded superior enhancement to both the growth and profitability of FTTH.
Robert Novick, Managing Partner said, “As a result of ECAP’s investment philosophy, our investors and employees both benefited from this sale. All vested employees received 33% of the proceeds, 33% was returned to Envision Capital for future investments, and the remaining third was returned to our investors.
As a result, ECAP is currently looking forward to utilizing the funds for it’s next equity stake shortly.