Featured Investments
NCN Case Study: Inova Payroll
Inova Payroll is a human resource outsourcing firm that offers payroll and other HR related services to small and medium sized businesses. The company was founded by industry veteran Farsheed Ferdowsi to address a gap in the changing payroll landscape by offering superior technology and customer service. Ferdowsi previously founded Paymaxx, which he led for ten years before it was acquired by CompuPay in 2005.
As a start up, Inova Payroll was seeking investors who were well-connected with the local business community and who could help facilitate strategic and client relationships. NCN's portfolio of local businesses, its active angel membership, and its sponsor relationships made it a natural fit to partner with Inova Payroll.
NCN was introduced to Inova Payroll by members of the Angel Group. This quickly led to several investment pitches that included NCN Angel Group members, some of whom ultimately participated in due diligence and continue to provide investment oversight at the Board of Directors level.
As Inova Payroll's funding event came together, NCN's network proved to be a valuable resource. In the end, Angel Group members, NCN Angel Fund, Tennessee Angel Fund, and NCN partner Chattanooga Renaissance Fund joined a number of existing investors in a $4.2 million Series A funding.
Post-funding, Inova has continued to lev
erage NCN's relationships to find business leads and develop new opportunities as it expands across Middle-Tennessee and beyond.
NCN Case Study: Shareable Ink
Shareable Ink provides a digital pen and paper technology that enables healthcare platforms to capture, report, and act upon electronic health information without changing clinical or back-office workflow. The company was founded by Stephen Hau, an MIT graduate and founder of the healthcare IT company Patient Keeper.
Shareable Ink was introduced to NCN by one of the company’s early angel investors, who is a member of NCN’s Angel Group. Shareable Ink expressed an interest in meeting Nashville-based investors who could bring healthcare expertise and relationships to its board of directors. NCN introduced Shareable Ink to notable healthcare investors including Heritage Group and The Martin Companies who saw promise in the company and joined in the evaluation and oversight of the opportunity.
After introducing Shareable Ink to the abundant healthcare resources in Nashville, NCN and the other Nashville investors were able to convince Shareable Ink to move the company’s headquarters to Nashville.
NCN worked with the investors to negotiate investment terms that would attract the proposed the $4.2 million Series A funding. NCN received a high level of interest from its Angel Group and was successful in raising enough money to complete an even larger raise at just under $4.6 million. The investor group included healthcare angels, NCN Angel Fund, and the TNInvestco Tennessee Angel Fund.
Shareable Ink closed its Series A funding in November of 2010 and has since been evolving its product suite and adding customers at an impressive pace.
NCN Case Study: Silvercare Solutions
Silvercare Solutions is the largest provider of nursing home bed side continence care in the United States. This company was originally funded by NCN Angels in cooperation with NCN’s Angel Fund.
NCN first met with Frazer Buntin and Chris Hilton as they were contemplating launching a business in the senior living space. NCN helped Frazer and Chris revise their business plan and meet with advisors. Taking the advice of their advisors, management identified and acquired an existing practice in Pennsylvania that would serve as their initial platform and proof of concept. Several NCN Angel investors with experience building early stage health care businesses agreed to underwrite Silvercare’s Series A financing and serve on the board of directors. NCN managed the syndication process for the remaining capital component and introduced Silvercare to its Angel Group.
As Silvercare prepared to present to the Angel Group, NCN introduced them to local advisors who critiqued the presentation and helped them make the appropriate adjustments to maximize its effectiveness with the potential investors. Silvercare was successful in raising $1.5 million in just over three months. Eight angel investors participated in the round on the terms negotiated by the lead investors in partnership with NCN.
In addition to bringing capital, NCN has helped the company connect with several key service providers including accounting, bookkeeping, insurance, and legal professionals. Silvercare was also able to leverage the relationships of the NCN investors to bring on an outside board member with considerable senior care marketplace experience.
Silvercare grew from 1,400 beds under service to nearly 22,000 beds in just over 18 months and was successful in attracting Series B financing from FCA Ventures in March of 2011.
