Developing Evaluation Criteria for Potential Investments in ISPs

Access to capital is hugely important for broadband technology companies and service providers of all sizes, but is especially critical to the success of new and growing companies. This means that not only do these companies need to find ways to engage potential investors and convince them to fund projects, but also that potential investors, specifically venture capital and private equity funds, banks, and startup accelerators, are frequently inundated by more pitches from broadband technology and service providers than they could possibly fund. And deciding which of these projects to fund presents its own challenges: assessing whether these pitches represent a “good” investment, and whether the company has the technical expertise, the financial wherewithal, and the operational capacity to actually bring the project to fruition.  In 2022, Vernonburg Group was approached by a prominent investment group to support their investment efforts with broadband technology and service providers.

Vernonburg Group worked with the investment group to create an objective set of criteria that would allow for this investment group to assess the technology and backend engineering, the company’s financial condition, and any political or regulatory risks that may threaten the companies success. Our team’s history of successfully deploying broadband projects at scale, and our extensive work with entrepreneurs and startups focused on broadband technology and connectivity, meant that we were able to advise the investment group not only on what questions they want to ask to get the information they feel is important, but also to advise them on additional considerations that are important to assess to get a true understanding of the health and potential of a broadband business. These criteria are now being actively applied by the investment group in considering potential investments in the broadband sector.