InnoVentures Invests $300K in Springville-Based Five Star Painting
Painting Franchisor Accelerates National Expansion
SALT LAKE CITY--(BUSINESS WIRE)--InnoVentures Capital Partners today announced a $300,000 investment in franchisor Five Star Painting. Five Star provides residential and commercial painting franchisees with 24/7 call center support, reliable and easy-to-use estimating software, and resources so the franchisees can stay current with the latest methods in painting.
The two-year-old Springville, Utah-based firm is on its way to substantial growth in 2008 thanks to their expertise in helping people start and run successful painting companies. Five Star's software reduces the franchisees' estimating time and offers foremen and customers detailed estimates and work orders that save time and money. Scott Abbott, CEO and founder of Five Star Painting, said, "One of the key drivers of our success is franchisee satisfaction. Five Star, in our second year, was ranked 15th among 350 applicants in the Franchise Business Review Top 50 under 50. We look forward to continued improvement of our system and to become the #1 service industry franchise in North America."
"Scott has the experience and the drive to make Five Star Painting succeed," said Steve Grizzell, Managing Director at InnoVentures. "It shows in the company's growth over such a short time in business."
Grizzell continued, "Five Star is an example of the type of business that InnoVentures seeks. While traditional lenders may shy away from companies in the service sector, InnoVentures, using its venture debt model, actively seeks them out. We look for sound business plans and strong management teams. Entrepreneurs should consider us even if they have no collateral and a limited history of sales."
Scott Abbot stated that he combined InnoVentures' funding with angel equity investors including the Utah Angels to optimize his financial strategy. "Joining InnoVentures' funding with other equity investors is an effective way to leverage the equity to minimize the dilution to founders and investors."
InnoVentures Capital Partners is the manager of the UTFC family of funds located in Salt Lake City, Utah. We invest in small companies throughout the region by providing subordinated debt to start-up and growing businesses. We fill a unique niche in the Utah venture capital network, providing up to $500,000 to entrepreneurial companies.