« BackAgility Ventures LLC

One Line Pitch: We enable the growth of the wireless broadband industry through funding and expertise.

Business Summary:

Agility Ventures provides capital and expertise to independent wireless broadband providers across the U.S. Our two equipment lease funds have provided capital to 35 wireless providers while generating very high returns for our investors through quarterly interest payments and participation income. Three of our clients are in the Top 10 wireless broadband providers in the U.S.

Management:

Our team has a unique combination of wireless broadband and technology finance experience that allows us to find, evaluate and structure secured finance opportunities for the industry we serve.

Customer Problem:

There is a lack of capital available to operators to allow the growth of their networks to keep pace with subscriber demand. Many operators also need additional domain expertise in order to scale.

Product/Services:

Agility provides the capital, the equipment and the expertise that enables the network operators to achieve profitable growth. Our funding is in the form of a secured master lease facility that allows the operator to obtain additional network equipment as needed to fulfill new subscriber demand.

Target Market:

There are approximately 3,000 wireless internet service providers in the U.S. According to IDC’s Broadband Services 2006-2010 Forecast (September 2006), the U.S. residential broadband market is expected to grow at a 14.3% compound annual growth rate between 2006 and 2010. Broadband penetration is expected to exceed 68% of U.S. households by 2010, up from 36% in 2005.

Customers:

Digital Bridge Communications
ERF Wireless
MetroBridge Networks
Airband Communications
Keyon Communications
Air Canopy
Dynamic Broadband

Sales/Marketing Strategy:

All clients are directly solicited by Agility through trade show participation, mailings and customer referrals.

Business Model:

Agility raises its capital from high net worth investors in its private debt funds. It issues senior notes that pay an 11% cash coupon plus a participation interest in the net residual income of the fund.

Competitors:

Agility was the first specialty finance provider in this industry and there is still very little competition due to the perceived risk associated with the broadband providers.

Competitive Advantage:

Agility has a rare ability to analyze the opportunities in this space due to the experience of our management team. We also employ a unique transaction structure which significantly mitigates the risk.