Stormwater Management, Inc.
In the midst of technology investing frenzy, a Green Company quietly triumphs.
Orca Capital raised a bridge round of subordinated debt with warrants to get to a Series A Private Placement of equity for Stormwater Management, Inc. of Portland, OR to provide capital for the growing company. Stormwater Management Inc. offered stormwater treatment products and services nationwide which enabled EPA compliance, using recycled materials. The Series A participants were a consortium of individual accredited investors and one venture capital fund.
Fuel to Sustain Growth
At the steep part of their growth curve, Stormwater Management confronted the challenge of sustaining rapid expansion in a tight timeline. Regulatory change had created a substantial market opportunity that they had the product and ability to address. They lacked the capital to fuel their growth. Furthermore, the opportunity of “green” markets was not yet widely recognized by institutional investors.
Matching the Capital to the Opportunity
Orca worked with Stormwater to carefully assess the capital they did need, using rigorous financial projections and market intelligence. Then, Orca put together a compelling presentation of the company, its unique position, and its explosive opportunity, showing the deal to suitable and appropriate participants.
We sidestepped the institutional markets, which were focused on .com opportunities, and secured $3.8 million of capital with a group of Angel investors who had the vision and appetite. Stormwater Management Inc. grew to 15 nationwide offices and 90 employees by the time it was acquired by Contech Construction Products Inc. in a subsequent transaction advised by Orca President Norman Duffett. The Company sold for $60 million, rewarding its original investors handsomely.