We've all heard about the "butterfly effect" - a butterfly flaps its wings in South America and there is a causal (but chaotic) relationship to the tornado that touches down in Oklahoma a few days or weeks later.  Minor perturbations can be multiplied or magnified and have profound implications.  So it was with great interest that I saw on page 72 of "No Easy Day" - the story of the Navy Seal's termination of Osama Bin-Laden - a reference to EOTech.  Specifically, "My primary weapon that I used daily was a suppressed Heckler & Koch 416 with the ten-inch barrel and an EOTech optical red dot sight witht a 3X magnifier."  

Why did I find that interesting?  Well, the reason is that EOTech was one of The InVentures Group's first clients - back in 2003 - and was one of the best examples of how "venture investing" ought to be done, in my opinion.  We were hired originally to do the due diligence on the technology and then later participated in organizing the capital raise while assisting in negotiating an acquisition of the company.  After the deal closed, one of IVG's partners was asked to serve as the "hand's-on" President of EOTech in order to turn the business around (it was hemorraging cash), optimize the manufacturing process (yields were awful and capacity was constrained), create a product that the military and police forces would be interested in (reliable, affordable, and rugged), and create a network of customers, partners, advisors, and board members that could be helpful to the company.  Without all of this, EOTech would most likely have folded in 2003 and the product might never have seen the light of day - or in the case of the Navy Seals, the dark of night!

 

IVG's central role in turning the company around over a three year assignment led to the product finding its way into law enforcement and military hands where it became the weapons-site of choice for many and ultimately led to the acquisition of the company by L3 Communications - a leading defense contractor.  Incidentally, the company was sold for roughly thirty times what we had paid for it three years earlier.

 

So, in some small but not insignificant way, I'd like to think that The InVentures Group contributed to our military's success against one of our most hated enemies.  You never know where your efforts may lead!

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