Private placements gain as funding route -
[Cached Version]
Published on: 3/25/2005
Last Visited: 3/9/2009
John McCawley, president of Denver-based telecommunications company GatheringPoint Networks, said his five-employee company looked at VC financing early on but didn't find a fit.
VC firms seek huge returns that are tough for a service-based business to generate, he said, and they seek to make larger investments than the $250,000 GatheringPoint needed.
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McCawley concurred.
In the last nine months to a year, he said, he has become "more aware about it [private placements] simply because the funds are available."
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"We engaged Huge Partners, knowing full well that we were not attractive to VCs," McCawley said.