Ed Ekstrom, vSpring Capital
Ed Ekstrom is a high tech pioneer. Before joining the vSpring team, Ed served as Vice President of the Intel Communications Products Group and General Manager of the Intel Utah Software Development Center, a post given to him after Intel acquired LANSystems where Ed was a Principal. Prior to Intel, Ed was a Vice President at CeriSyn and a founder at Cericor, which was acquired by Hewlett Packard in 1985.
Silicon Slopes: Tell us about vSpring.
Ed Ekstrom: vSpring Capital is an early-stage venture capital firm that invests in information technology and life science companies. With offices in Utah and New Mexico, the firm has over $390 million under management.
Silicon Slopes: Can you tell us about the history of the firm? How did it all get started?
Ed Ekstrom: vSpring Capital was founded in 2000 as a leading venture capital firm in the Intermountain Region. Our goal is to build deep relationships with the best entrepreneurs in our region and serve as a trusted local lead investor for the most respected national funds seeking to invest in our region. Our team and our investment process were designed to help companies better utilize the natural advantages and to overcome the unique challenges of doing business in the Intermountain West.
Silicon Slopes: What have been the greatest accomplishments of the firm?
Ed Ekstrom: Our firm has had many great accomplishments with exits such as LandDesk, MyFamily.com, and ComScore. We have also created several unique institutions serving entrepreneurs in our region like the v100. These are just a few accomplishments that we are proud of as we continue to help grow and add value to the Intermountain west.
Silicon Slopes: What are the top 3 things you would like companies or entrepreneurs to know before going after funding?
Ed Ekstrom: It basically comes down to the four M’s: management, market, machine and money. They first have to have a management team that can execute and is credible. Next there has to be a market. By market i mean a well identified customer and an opportunity surrounding that customer. Next there is the machine. There has to be a clearly defined business model including a go-to-market and sales strategy and everything else that surrounds. Finally, there has to be money. Money is like water to cake mix. However, the deal has to make sense for us. This basically means that we need to get enough ownership to justify the time investment that we will put into the company.
Silicon Slopes: During this economic downturn, you’ve been able to remain successful. Why is that?
Ed Ekstrom: We have focused on lengthening the runway of our current portfolio companies through cost reductions, consolidation and providing additional runway. Our objective for these companies is 18 months to two years.
Silicon Slopes: You were recently recognized as one of the leading Utah company investors for 2008 at the MountainWest Capital Network’s Deal Flow event. What kinds of companies do you look to invest in, and why do you think Utah is a great place to find them?
Ed Ekstrom: Our primary areas of focus include enterprise software, networking and communications, security software, Internet, mobile computing, drug discovery, drug delivery, diagnostics, and medical devices, all markets where the firm has deep experience.
Silicon Slopes: What is your business approach and how does it set you apart from others?
Ed Ekstrom: One of our key business approaches is to invest in management teams that we have respect and trust for. Also all of the partners have been entrepreneurs. Collectively, the vSpring team has founded, served as senior officers or board members of over 75 companies. Combined, the directors have a history of successful company leadership and private equity investments that span over 60 years. As a result, our team has the resources, decision-making experience, and relationships to meet the demands of today's entrepreneurs.
