Southridge Capital is similar to a venture capital firm, but instead of simply offering seed funding to the companies they support, they offer more of a private equity firm and comprehensive leveraging approach that gives those businesses more structure to work with. The kind of businesses they finance are usually highly innovative and future-minded organizations ranging from the healthcare to the financial services industries. One of the first big companies they invested in was Imaging Diagnostic Systems, Inc., a cancer treatment research company that developed and currently uses a Computed Tomography Laser Mammography system. The latest company they added to their portfolio is Elite Data Services, Inc., a data gathering and analytics organization focused on advertising in various segments. The equity in Imaging Diagnostic Systems was acquired for $15 million while the equity in Elite Data Services was $5 million.
According to linkedin, Southridge Capital has poured a total of $1.8 billion into more than 250 companies since its establishment. Stephen Hicks, the founder and CEO of Southridge Capital began the firm in 1996 and has built it into a reputable private equity operation that has taken a diverse approach to structuring business financing. The methods they use for structured finance include securitization which finances a company against the assets it holds, credit enhancing, and other financing such as Equity Purchase Agreements, convertible debentures, common stock loans and a variety of other leveraged mechanisms.
Aside from the usual corporate financing services and taking companies public, Southridge Capital also provides advisory for administrative and legal decisions companies may be faced with. They are known for writing up balance sheets for managing debt and accumulating debt and analyzing the costs that various deals could bring. They also work with different merger and acquisition strategies and can guide them through bankruptcy filings and making legal settlements. You can visit southridge.com for more info.
Southridge is also a partner of several non-profit groups in the Connecticut and New York areas. Hicks personally started the Daystar Foundation to support local community preservation efforts as well as helping healthcare and performing arts organizations. Other organizations supported by Southridge Capital include Walnut Community Hill Church, the Bridgeport Rescue Mission and the Ridgefield Sunrise Cottage.