CrossBridge Advantage

The CrossBridgeAdvantage is a hands-on approach that focuses on active involvement and participation with management before making the initial investment.  The Fund will invest in a business once they have first identified a market opportunity in Asia.  Should the Fund Managers conclude there is a market opportunity in Asia, they will work alongside management to develop a market strategy that includes identifying strategic partners including JV partners, vendors, distributors, OEMS, and contract manufacturers.

The Fund Managers will combine their knowledge and expertise that offers venture-backed companies in the United States: (i) the appropriate capital structure, (ii) timely and strategic access into Japan, the world's second largest market, (iii) access to more than 50 leading technical advisors in the United States and Asia, in addition to (iv) valuable partnerships to other venture-backed companies.  The CrossBridge value-add is in helping companies crystallize their business and finance strategies, as well as in recruiting, marketing, technology, and business development in Asia.

The Fund Managers' aim is to quicken the time to the Asian market for portfolio companies.  The Managers assist portfolio companies in attacking the sales and distribution channels in Asia while giving them access to some of the best technical expertise in the world.  Many funds and consultants provide introductions, but few can identify personnel within the Asian organizations that are capable and willing to make the key decisions with foreign partners.

This strategy resulted in many successful ventures in the past.

Network Express, Inc.

Network Express is an example of how the Fund Managers supported a company from inception to IPO on the U.S. NASDAQ.  The company manufacturers switched network controllers for the ISDN market.  Before President Clinton's Super Highway Concept, several ISDN related ventures in the United States rushed to Japan for financing because the U.S. venture capitalists were not interested at the time.  After recognizing the opportunity, the Fund Managers assisted management in formalizing the company's Japanese business strategy while taking the lead investor position in 1991.

At the time of investment, the Managers identified and negotiated a contract manufacturer relationship with Fujikura while also negotiating the terms with Soliton Systems, a large systems integrator.  The Managers went one step further by cultivating the company's first router shipments to Nippon Telephone & Telegraph.  In early 1995, the Managers assisted management and their Underwriters, Unterberg Harris and Furman Seltz, with Form S-1 in preparation for the IPO.

The following list of past investments further illustrates how the Fund Managers provide accelerated, strategic, and marketing activities for emerging technology companies entering into Japan.

C-Cube Microsystems Inc. (LSI for video-compression-decompression, JPEG and MPEG)

Established joint venture with major heavy equipment manufacturer.

Aehr Test Systems (Burn-in testers for chips)

Supported sales activities in Japan while simultaneously making a $2 million investment in Nippon Aehr Test K.K., the company's subsidiary in Japan and Aehr Test Systems.

Novellus Systems, Inc. (Plasma enhanced chemical vapor deposition (CVD) Reactors for semiconductor fabrication.

Procured exclusive distributor in Japan.
Raised $1.7 million from Japanese VCs.

Raster Graphics, Inc. (Digital color printers for big projects)

Secured and monitored for Japanese distributors.
Raised $500,000 from a Japanese VC.

The Lightspan Partnership

The Lightspan Partnership (NASDAQ: LSPN) is a developer of innovative, educational software and Internet products for use in both schools and homes, designed to improve student achievement.  The company wanted to access the education market in Japan.  After working with management, the Fund Managers from Techno provided access to the Sony Corporation, which co-invested and made a $5 million direct equity investment in the Lightspan Partnership.

Tivoli Systems, Inc.  (Systems management tools and application software for client-server systems)

Facilitated four distributor arrangements in Japan.

Epoch Systems, Inc. (Data back-up and storage systems using a combination of HDD and optical disks)

Supported the company's exclusive distributor in Japan with a major trading company.

CIENA Corporation (DWDM systems to long-haul telecommunications carriers)

Secured exclusive distributors with a major Japanese trading company for Asia, mainly China and Thailand.
Raised $5 million investment from a major Japanese trading company.

Quickturn Design Systems, Inc. (Digital design verification and hardware emulation tools and computer aided engineering software)

Raised $1 million from two Japanese financial partners. 
Monitored the company's distributor, a major Japanese company.
Augmented sales activity for Quickturn Design Systems K.K. in Japan.

The Fund Managers believe that their knowledge and understanding of both the U.S. and Asian markets are key elements to the Fund's prospects for success whether in making investment decisions, guiding portfolio companies, or exiting a relationship at the right time.  The Fund Managers have a well-developed set of beliefs that guide the conduct of their activities.  They want to associate with the best people, as partners, managers, employees, and advisors.  They want to invest in important businesses, those with management, products, and markets that enable them to lead rather than to follow.  Technology and people are the foundation of their investment in companies.