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Corporate Finance Division

Internet Company Venture Capital

The internet touches each and every life on the planet directly or indirectly each day. The Internet is a network of interconnected computers which employ the Internet protocol suite (TCP/IP) to connect BILLIONS of devices globally. The network of networks includes millions of government, public, private, business and academic networks. The individual network could be local or globally connected by a wide array of wireless, electronic and optical technologies. The information carried by the Internet is quite humongous. the Internet comprises the applications of World Wide Web, Inter-link hyper text documents, electronic mail and much more. Uses of Internet started way back in 1980's, however, it was limited to academics. It was not until a decade later when the actual commercialization of the Internet started. After the mid 1990's, its uses increased by leaps and bounds.

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The traditional modes of communication are getting re-defined with the extensive uses of Internet. Internet telephones that include live images have already caught the attention of users. Internet television has already become a disruptive technology as consumers are "cutting the cable cords" that connect their Televisions.

 

News, books and magazines – all of them are creating a footstep on the internet to stay competitive. Many of them are getting molded into the form of blogging sites, web feed and news feed. Personal interaction has taken a completely different meaning with the advent of internet. There are multiple social networking sites along with innovative ones like Whatsapp and Wechat.

 

E-commerce shifted the entire paradigm of the shopping industry, disrupting retail commercial real estate (leading to increased supply and decreased rental rates) and creating a whole new service industry in home delivery. Young demography no longer prefers shopping malls for purchasing clothes and other items. In just a few clicks, Internet users get better products at better prices.

 

Insurance and other businesses have also undergone rapid change with the advent of the Internet. Different Insurance policies can be compared online for suitability, and the right decision can be taken without worrying about the agent fees and other hassles.

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One of the positives is that the Internet does not centrally govern the technical implementation for use and access. The constituent network has the freedom to formulate its own policies and direction. The main organization ICANN (Internet Corporation for Assigned Name and Numbers) directs only the Internet Protocol address space and the Domain Name System.

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Synergy Capital Markets' categories of interest include the consumer Internet (e-commerce, mobile, media), cloud-based enterprise software, and the industrial Internet of Things. We partner with data-driven business where our highly-analytic approach can help entrepreneurs identify the key performance indicators to scale their businesses.

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Fostering Growth without Diluting Equity:

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For Internet companies at critical stages of development, debt can serve as a key financing option to foster growth, with minimal dilution of equity ownership. At Synergy Capital Markets, not only do we understand the industries of our portfolio Internet companies, but we also understand the growth process - and occasionally the growing pains - they undergo.

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When venture debt is used appropriately, we believe entrepreneurs gain the following benefits:

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  • Able to raise capital in a way that benefits the team and the business as a result of the greater flexibility offered by venture debt than traditional forms of debt financing

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  • Have more time between equity rounds to build the business and achieve critical milestones, which creates potential for greater valuation

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  • Retain a larger ownership stake in the company prior to an IPO or other liquidity event

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  • Achieving milestones quickly in many cases also means reaching the IPO stage more rapidly

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