Industry Sector

Industry Focus

Our General Partners have operating and investment experience across the information technology segment:

Edison has made 10+ investments in most market segments. We maintain a flexible approach considering a broad spectrum of new technologies and market opportunities which offer unique products and services, rapid growth and high profit margins. We do not invest in real estate or special projects that do not have a continuing business life.

Geographical Focus

In order to facilitate frequent personal involvement, Edison prefers businesses located in the Mid-Atlantic region within several hours travel time from our New Jersey, New York, Virginia and Pennsylvania offices. This geographical focus encompasses New Jersey, Pennsylvania, New York, Delaware, Maryland and Virginia. We also consider opportunities in New England and North Carolina.

Expansion Stage

Edison invests in expansion-stage companies with at least $5 million revenue which realistically project surpassing $25 million within five years. We also lead management buyouts, spinouts and recaps.

Edison welcomes opportunities to assist strong teams with plans to expand or invigorate established companies in management buyouts. We have considerable experience with roll-ups of regional businesses. Edison considers situations, such as the sale of a family-owned business, divestiture of a division of a large corporation, and spinouts of a technology unit from a leading research laboratory.

Edison also makes secondary stock purchases from existing shareholders. Edison will recapitalize companies which need to reduce liabilities and raise new equity.

Investment Structure

We invest time, effort and money in the creation, development, and expansion of a company. In return, we require an equity interest. Edison usually purchases convertible preferred stock. Edison will consider common stock especially when purchasing from existing shareholders.

We tailor an investment to provide both sufficient funding for the company and attractive incentives for management, employees and investors. Edison usually acquires an influential shareholding, but less than a controlling position. Our primary investment goal is capital appreciation.

Edison charges no fees. We prefer straightforward investment agreements without complicated defensive terms that can set investors apart from management.

Investment Size

Our initial investment typically ranges from $5 to $8 million. When a company requires additional capital, Edison organizes a syndicate among prominent venture capital firms, financial institutions and major corporations. Edison's Limited Partners are potential co-investors in later stage financings and recaps. Edison plans to make subsequent investments up to $10 million combined.

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