The assets of Prismo Systems, a portfolio company of Sequoia Capital and Corner Ventures, have been acquired in an ABC sale process
ABOUT THE COMPANY:
Prismo Systems raised nearly $30 million to redesign cybersecurity. Backed by some of the most storied names in venture capital, the Company developed a product providing enhanced security to the software that powers modern enterprises across the software development lifecycle.
SITUATION:
Rapidly shifting market conditions posed significant challenges to the Company, thwarting its launch of the product it had spent years developing. Further iteration could address these issues but would be costly, and stakeholders had differing levels of support for a go-forward plan. Board members needed a way to satisfy liabilities and otherwise proceed in a responsible manner.
ENGAGEMENT:
The Company engaged G2 to serve as assignee in an assignment for the benefit of creditors (“ABC”) process. As assignee G2 would have the primary responsibility of maximizing creditor recovery by selling the Company’s assets. In addition the assignee was tasked with winding down Prismo’s operations in both the US and India, communicating with interested parties, and overseeing the distribution of funds.
OUTCOME:
Upon launching the ABC, G2 as assignee leveraged its investment banking expertise in a broad sale process. The team identified several interested parties, who engaged in due diligence around the intellectual property as they considered placing a bid. G2 brought these parties together for an auction and closed with the highest bidder at more than double the amount management had expected at ABC outset. The Assignee then distributed funds to unsecured creditors.
