Case Study: Active Engagement
Inlet Technologies was founded in Raleigh, North Carolina in 2003 by three serial entrepreneurs with strong backgrounds in video-encoding technology. TVP's initial investment in the company took place in 2005, when they had 14 employees and approximately $1 million in annual revenues. At the time, the company's focus was on Video On Demand (VOD) streaming with Netflix as an early customer. As the company matured and progressed, they developed a unique and highly differentiated signature in Live Streaming to multiple devices and screens over IP networks using Adaptive Bit-Rate technology.
Inlet's live-streaming, software-enabled appliance caught the attention of major content producers and distributors, such as MLB.com and NBC Universal, and video-equipment providers including Cisco Systems. Inlet's market-leading solutions and strong customer traction led to significant revenue growth for the company from 2007 through 2011.
TVP partners, Bryson Hollimon and Don Bossi, served on the Inlet Board of Directors and helped guide and strengthen the company during this period of rapid market adoption and growth. Don also became Chairman of the Board in conjunction with a subsequent TVP-led financing.
As the company began to experience strong success, the company's visionary CEO and Co-Founder, Neal Page, was unfortunately diagnosed with and passed away from leukemia. As tragic as these circumstances were, the employees and investors were committed to honoring Neal's legacy through the continued success of the business. Because of our deep knowledge and experience with the business, TVP's Don Bossi became CEO and led the company until its successful acquisition in 2011 by Cisco Systems for $95 million (7.3x revenue multiple).
Inlet Technologies, Inc.
|Investment Focus||Video Technology|
|Exit Valuation||7.3x Revenues|
|Return on Investment||5x|
|Acquired By||Cysco Systems|
“TVP’s willingness to leverage its network of resources across multiple facets and functional areas of our business played a vital role in the development and ultimate success of our company.”