VidSys gets $3m loan

Venture loan provider thinks PSIM has down-market potential
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Wednesday, January 16, 2013

FARMINGTON, Conn.—Horizon Technology Finance Corp. has provided a $3 million venture loan to PSIM provider VidSys.

While the loan closed Nov. 15, Horizon did not announce the deal until Jan. 9. Horizon, which is based here, made a number of year-end deals and did not want to announce them all at one time, Gerald Michaud, president of Horizon, told Security Systems News.

In business since 2003, Horizon does debt financing for development-stage technology companies that have equity sponsors.

“All of the companies in our portfolio have venture capital sponsors. And [VidSys] has one venture capital sponsor we know well,” he said. That firm, Flybridge Capital Partners, “is one we particularly like a lot. They think strategically and are hands-on [with their investments].”

Michaud said he likes the potential of PSIM systems to go down market. “We think [the technology] will get down to medium-sized companies and maybe small companies [eventually],” he said.

Horizon has investments in IT security providers and one other company that does some physical-security-related work.

“We have a certain profile we look for: a company with a venture capital sponsor, and it helps if we know one or more of the investors. We [also] look closely at the management team,” Michaud said.

VidSys will use the loan to accelerate adoption of its technology, Michaud said. VidSys declined to comment on the deal.