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Funding
Guidance
Client: US Order
US Order was one of the earliest entrants into the online banking
market in 1992. Using a combination of payment, card reader, and
smart phone technologies, the company created a device and process
that not only facilitated remote banking from home, but also presented
a wealth of other opportunities for both application of the technology
to other markets and extension of the business process to other
technology solutions.
Growing initially from the seed money of core investors, US Order
wanted to secure outside private capital from strategic partners
instead of more traditional private equity investment sources.
- US Order had valuable and unique technology and a wealth of
potential applications for that technology, but had not clearly
articulated either their company message or the opportunities
on which to focus. This included not having a written and comprehensive
business plan.
- US Order was seeking to raise $20 million but had limited
access to a network of appropriate strategic partners offering
the right level of financial resources and able to provide the
desired business synergies sought.
- Lighthouse recommended the for use both in attracting
prospective investors and ultimately in creating a private placement
memorandum for securing funding.
- Lighthouse led the process to help the company and then developed a business
plan document for US Order to communicate the message to potential
partners. Lighthouse creatively and successfully helped to boil
a complex message, market, and technology down to an easily
understood strategy that would be attractive to investors.
- After developing the strategy and the business plan, Lighthouse
then helped US Order to several large potential strategic
partners, including NCR, NEC and Knight Ridder.
- The company was ultimately able to secure first private equity
commitments from several companies and later an acquisition
deal for the banking portion of its business from Visa. This
eventually led to both the successful establishment of Visa
Interactive and the IPO of the remaining part of US Order.
- As a direct result of Lighthouse's efforts, US Order successfully
secured letter of intent commitments from several sources for
approximately $7 million.
- After Lighthouse's strategy and business planning work, the
company was in a strong position to articulate its message and
mission to others - partners, investors, customers, management
- which had a direct and positive impact on its ability to raise
capital and to run its business.
- Given Lighthouse's deep knowledge and understanding of the
business and its valuable contribution to US Order's funding
and business evolution, Lighthouse continued to be engaged to
offer strategic support and guidance to both Visa Interactive
and US Order for more than 5 years as well as provided direct
support to Visa International.
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Case Studies:
Funding Guidance...
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