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SEATTLE–(BUSINESS WIRE)–May 8, 2014–
Amazon’s recent purchase of ComiXology affirms Columbia Pacific Advisors’ $100 million funding strategy for technology-enabled companies in need of growth capital, the firm said today.
Columbia Pacific Advisors, based in Seattle, provided the majority of capital to ComiXology, the leading digital comics platform. Amazon’s acquisition of ComiXology just closed last week.
Columbia Pacific Advisors’ growth capital fund, formerly known as Union Bay Capital, addresses an underserved segment in the growth-stage financing market. Columbia Pacific Advisors is looking for promising technology-enabled companies that don’t meet the rigid lending requirements of a bank but don’t want to give up company control and ownership to venture capital and private equity firms.
ComiXology was already a successful company when leaders there first spoke to Columbia Pacific in early 2011, but the company knew it needed money to grow. At the time ComiXology, a New York-based digital media company, did not meet the loan requirements of banks, nor did the company’s plans match up with the terms demanded by venture capital firms.
Columbia Pacific Advisors through its debt and equity investments became the sole institutional investor and largest capital provider to the burgeoning digital comics business, and three years later, Amazon acquired ComiXology.
“Partnering with David Steinberger and the team at ComiXology was a great experience,” said Jeff Schrock, lead partner on the Columbia Pacific investment team. “It’ll be exciting to see how ComiXology becomes a key asset for Amazon’s digital media efforts.”
Columbia Pacific’s growth capital team invests through an innovative model. The team’s approach doesn’t take a large equity interest like a venture capitalist or require proven cash flow or personal loan guarantees like a bank. Instead it structures tailored financing facilities, using both debt and equity, to match the specific needs of the expanding company.
Columbia Pacific doesn’t just provide growth capital; the firm provides counsel and assistance where needed, while leaving the day-to-day running of the company in the hands of the people who created it.
ComiXology was financed from Columbia Pacific’s debut growth capital fund. Columbia Pacific intends to expand their growth capital investment efforts and expects to invest up to $100 million in expansion-stage companies from this fund and other investment vehicles.
The growth capital strategy is run by Kevin Barber and Jeff Schrock, who have more than 40 years combined experience as tech entrepreneurs, investors and executives at such companies as Intel Capital, Yahoo!, Northwest Venture Associates, Real Networks, Visio, Hewlett Packard and Activate.
In addition to ComiXology, the Columbia Pacific growth capital team has provided capital to Blue Box Group; World CNG; Next IT; Lighthouse eDiscovery; and Northeast Wireless Networks.
Columbia Pacific Advisors just launched a new website at www.columbiapacific.com.
About Columbia Pacific Advisors:
Columbia Pacific Advisors, LLC is an SEC-registered investment advisor based in Seattle that manages assets of more than $850 million in a variety of alternative investment strategies. The firm has extensive experience in real estate, public and private equity, distressed debt and special situation lending.
(Note: Registration with the SEC does not imply any level of skill or training.)
Pacific Public Affairs
Ashley Bach, 206-682-5066