Electro Scientific Industries, Inc. (NASDAQ:ESIO) acquired portfolio company Visicon Technologies in August, 2016. We invested in Visicon first in 2007 and members have made subsequent investments. The acquisition is mentioned in this press release.
It appears a good match for ESIO and Visicon. Visicon’s machine vision based products and services are designed specifically to deliver the high throughput, high accuracy, measurement and defect detection systems that enable a business to reduce inspection costs, improve manufacturing processes and increase quality, while ESIO is an innovator of laser-based manufacturing solutions for the microtechnology industry,
Angel money is often called “patient money”. The Roseville based CustomerLink exit is a great example; the investment was made in 2001 so the investors’ money was tied up for 13 years before the investment became liquid. Terms of the acquisition have not been disclosed but we know the members who invested in CustomerLink were happy with their returns.
You can read more about the acquisition and the company in the article in the Business Journal and in the company blog.
Today Marrone Bio Innovations (Symbol: MBII) of Davis had their initial public offering on the NASDAQ stock exchange. It was priced at $12/share and ended the day at $13.75.
SacAngel members first invested in the company in 2006 as part of MBI’s first round of funding (Series A). It is estimated from the company S-1/A filing with the SEC that those investors had a return in the range of 6.4x based on the closing price today (i.e., for every dollar invested, their return today, if they sold their stock, would be $6.4). Similarly, those that invested in subsequent Series B (2008) and Series C (2010-11) financing rounds got returns of 3.9x and 3.6x, respectively.
It looks like our law makers are coming to their senses and reviewing the issue of the “Retroactive Tax Surprise”. See this article in the Sacramento Bee.
In late December, the California Franchise Tax Board (FTB) decided to cancel the Qualified Small Business Stock (QSB ) tax benefits and retroactively deny the benefits for the past five years. Yes, RETROACTIVELY! Investors and Entpreneurs alike are in for a surprise — see this article for a summary of the change in QSB benefits and how it effected its author.
Here is just one quote from the article:
“More importantly, the FTB’s radical action is going to send a terrifying message that will have the unintended consequence of driving young, growing businesses to friendlier environments. That’s the last thing that the state of California needs right now”