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Case Studies, Early Exits

Pacinian – The Interview Videos

by Basil Peters on August 13, 2013 · 5 comments

It’s rare to be able to post a detailed case study on an early exit. The most interesting information is usually restricted by a non-disclosure agreement. This is a very valuable opportunity to hear directly from the Chairman and a lead investor about what went on behind the scenes in this $30 million pre-revenue exit.

These videos complement the complete written case study.

Highlights of Part 1 – Johnny Humphreys and Basil Peters:

  • The original idea and Pacinian’s mission.
  • How far did the company get?
  • Company sold before the product is in production?
  • Pacinian’s $6 million of angel funding.
  • Developing the exit strategy.
  • Attending the Exit Strategies Workshop.
  • It requires discipline. What might have happened.
  • Many shareholders thought it was impossible.
  • Who is really in charge during the negotiations?
  • The exit timeline – how long did it all take?
  • Congratulations Pacinian! A very successful outcome.

Highlights of Part 2 – Johnny Humphreys and Basil Peters:

  • Valuation is always a challenge.
  • Profile of the successful buyer.
  • It was the “worst kept secret”
  • $30 million cash for a company that was pre-revenue!
  • The company set the price – not the buyers.
  • Pacinian had several strategic options:
  • Venture capital funding, licensing offers and moving to production.
  • Similarities to the Brightside exit (case study here).
  • Early Exits are optimum for most companies.

Highlights of Part 3 – Bill Payne and Basil Peters:

  • This was not Silicon Valley.
  • The Pacinian investments from the angels’ perspective.
  • The Early Exits Strategy and book.
  • Initial stakeholder skepticism about an Early Exit.
  • At The Exit Strategies Workshop.
  • Building the alignment – a critical need.
  • A $30 million Early Exit – pre-revenue.
  • The Frontier Angel Fund in North West Montana.

For more on the Pacinian exit, here’s the complete case study.

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