Axial Raises $11M to Transform How Companies Access the Private Capital Markets
Comcast Ventures Leads Series B for Network Connecting Private Company Owners to Advisors and Providers of Capital
NEW YORK, Aug. 14 2014 /PRNewswire/ – Axial, the largest network for professionals who run, advise and finance private companies, today announced it has raised $11 million in a Series B funding led by Comcast Ventures and joined by existing investors, Redpoint Ventures and First Round. Select Axial members also joined the new round, including Thomas W. Courtney, Jr., President of The Courtney Group.
Axial improves the speed and efficiency with which private companies access capital by connecting them to a qualified network of investment professionals and financial intermediaries. Each week, over 200 private companies create profiles on Axial to explore, prepare for, and pursue financial transactions, including acquisitions, equity capital raises, and debt financings. Since the company’s launch in 2010, 23,000 private companies, representing more than $400B in revenue, have brought their deals to market on Axial.
“We are excited about the shifts happening at the intersection of financial markets, technology, and media,” said Sam Landman, Principal at Comcast Ventures. “Axial’s marketplace dramatically improves the way capital markets meet the needs of middle market businesses. We’re thrilled to be investing in this company.”
Opening Up the Private Capital Markets
In the past two years, Axial’s membership has grown by 300%, counting 19,500 members on the network today. In addition to CEOs and business owners, members on Axial include private equity professionals, strategic buyers, middle market senior and mezzanine lenders, active family offices, investment bankers, M&A advisors and business brokers.
This financing round takes the New York-based company’s total funding-to-date to $20 million. Axial will use the new investment to continue its focus on growing the network and innovating relentlessly to make it easier for middle market companies to successfully access capital.
“There are well organized capital markets that serve Silicon Valley rocketships, the Fortune 500 and the mega-cap players. Everyone else is broadly lumped into the middle market. It turns out that middle market is collectively the 5th largest economy in the world,” said Peter Lehrman, CEO of Axial. “Despite its size and importance, middle market business owners suffer from tremendous inefficiency when trying to access capital. Axial is built from the ground up to focus on organizing the capital markets that enable this vital economic engine to grow.”
Powering Transactions Through A Connected Network of Relationships
Axial’s network is designed to intelligently connect each of the members of a corporate financial transaction – CEOs, their professional advisors, and capital providers. The transactions that ensue include acquisitions, divestitures, joint ventures, growth equity, mezzanine and senior loans, and project & acquisition-based financing. Members on Axial include professionals at GE Equity, BB&T, Johnson & Johnson, Audax, HIG Capital, Summit Partners, TPG Specialty Lending, Fortress Investment Group, Provident, CVS, and Hershey’s, among others.
To facilitate the creation of these connections and transactions, Axial has created a set of proprietary search, recommendation and profile engines. Members of Axial create profiles and descriptions of the opportunities they are seeking and the platform connects them with relevant people and potential transactions. Recent product launches include:
- News Feed - The Axial News Feed combines both programmatic and user-generated activity to help members tracks real-time network activity by industry and geography across time.
- Deal Search & DealRank – Axial provides fine-tuned search capabilities based on investment mandates and business goals.
- Company Valuation Tool – Entrepreneurs anonymously submit their company’s financial information and instantly receive a free valuation estimate of their company based upon the most authoritative valuation methodology — the discounted cash flow method. Informing and educating entrepreneurs helps close the gap between buyer and seller expectations.
Axial (www.axial.net) is the largest network for professionals who run, advise, and finance private companies. Every week, over 200 private companies use Axial to passively explore or actively pursue a financial transaction. CEOs and transaction professionals join Axial to access advice and capital, build relationships and exchange opportunities to help them and their organizations succeed. Axial is headquartered in New York, NY, and is backed by Comcast Ventures, Redpoint Ventures and First Round.