Apex Investment Essay

AccessLines initial financing came in the attain of strategic alliances. In 1989, McCaw Cellular Communication invested in AccessLine, providing a goodish amount of their intial capital. This funding secured the strategic partnership mingled with AccessLine and McCaw Cellular. This launched further alliances between AccessLine and other phone company carriers, in which AccessLine granted them an exclusive franchise in the market for a set fee. The carriers were permitted to market AccessLines good under their own company name.AccessLine also developed partnerships with equipment manufacturers such as Stratus Computer and Motorola, also providing them with a franchise in transposition for funding. However AccessLines growth prompted the need for larger investments. Thus, in 1994, AccessLine change their financing to professional equity investors. Providing funding worth $15. 5 million, AccessLines CFO Bill Stuart, and Morgan Stanleys Bill Brady executed the transaction, involvi ng the private situation from five investors. Such a strategy was chosen due to AccessLines lack of capital in the initial stages of AccessLines establishment.AccessLine was not lacking in management or technology and thus was not in need of a venture capitalist in its early stages to accountant the company or provide the company with expertise or administration. hidden investors, such as McCaw Cellular Communications, were more appropriate for AccessLine in that they provided the prerequisite funding without coercing AccessLine to forsake control of the company. McCaw also provided both clientele and investments. AccessLines lack of experience from mergers and acquisitions forced them to eventually turn to venture capitalists in 1994, a time when their strategy had changed.The venture capitalists could help in evaluating a target company through their experience in purchasing and selling businesses. The funds from Apex Investment Partners would serve beneficially for AccessLi ne because of their vast intimacy and experience in the industry. George Middlemas and Rick Bolander, both of whom had joined Apex in the early 90s, had had previous experiences working in the telecommunications industry and racked up an extensive list of contacts in the industry. Thus, Apex would eventually prove to be a profitable investment for AccessLine.