Lateral Capital Management, LLC

Acme Tracking Technology

Acme Tracking Technology (ATT) offers location-based electronic “finder” technology using very high-end software and hardware. While the company started with a “kid finding” product tied to children’s shoes, it morphed into a complete tracking system for high value medical equipment in hospitals – crash carts, mobile x-ray devices, etc. We made a very small early investment but did not invest in Series A or subsequent rounds.

  • Assessment: While we liked the company, we thought the valuations for the follow-on rounds were too high at the point we had money to invest.
  • Outcome:National distribution through large OEMs helped put this company on a fast track to huge success. In fact, one large medical equipment maker made dozens of presentations for ATT, in order to help protect their own leased equipment in hospitals! The company has since sold, returning about 30X investors’ money.
  • Learning: We learned here that we shouldn’t be afraid to keep investing, even when valuations steepen – if the value to prospective buyers has grown at the same or higher rate. This also means we have to keep follow-on investment money on hand.