Cascadia Capital Lands 3i and BV Capital for Leading Broadband Services Provider

Challenge

Speakeasy, the nation's largest independent broadband services provider, engaged Cascadia Capital in mid-2003 to advise it on financing alternatives. Speakeasy chose Cascadia Capital for its ability to represent a broader and more complete view of the company to the capital markets. Speakeasy wanted to leverage Cascadia Capital's existing relationships to bring new investors to the table. In addition, it relied on the firm to create an environment that would allow Speakeasy to obtain a higher valuation representative of its success.

Solution

Cascadia Capital's initial feedback from the capital markets indicated a high-level of interest for a more aggressive growth strategy, requiring a larger financing round than Speakeasy's initial round size of $5 million. Speakeasy's high average-revenue-per-user metrics, supported by a smart approach to wrapping higher-value services around broadband connections, contributed to the increased value for the company in the eyes of the capital markets. As a result, Cascadia helped Speakeasy build consensus around a larger financing strategy consistent with the executive team's progressive vision for the company.

Results

Recognizing the demand in the marketplace, Speakeasy and its Board of Directors decided to raise nearly five times the original financial goal to support the company's revised growth strategy. Cascadia Capital delivered multiple expressions of interest from investors, building favorable competitive dynamics that allowed Speakeasy to select strategic investors that shared their vision for the company. Ultimately, 3i and BV Capital, both well known for their investments in innovative and high growth businesses, were selected to lead the round.