In November 2017, MemberSuite accepted a $5.5M round of funding. Check out the SEC filing.
To the best of my knowledge, MemberSuite is the only venture capital-backed AMS in the market, and has raised $13M in funding since September 2016. They appointed a new CEO in November 2017. This round of funding may have been used to acquire the shares owned by the founder and former CEO, transferring ownership of the company to new shareholders.
For those of us who do not understand the difference, could you explain how this differs from what Community Brands has accepted?
Merry Christmas,
Terry
Venture Capital (VC) is considered to be higher risk and higher reward. VC investors tend to put their money into early-stage, high-potential companies. VC investors accept that most of their investments will lose, but one big win could make all of the losses worth it. Imagine making 10 bets of $100,000. Nine of those go to zero, but one returns 20x — you’ve just made $1M.
Private Equity (PE) is usually invested in more established businesses; those which have reached maturity and need additional funding to take their operations to the next level. PE is considered to be less risky than VC. Still, PE investors are typically looking for a 4-7x ROI within 4-7 years. Many PE funds are run for the benefit of retirement plans and university endowments, where risk is less palatable.