VESTAL, N.Y., Feb. 19, 2008 (PRIME NEWSWIRE) -- Advantage Capital Partners, a leading venture capital and small business finance firm, has announced participation in a $1 million funding round for ThreadSmith, a custom embroidery retail and online store located in Vestal, N.Y. The funding, raised in connection with the New York Certified Capital Company (CAPCO) program, will be used for working capital, sales and marketing needs.
ThreadSmith offers a new business model for the custom embroidered products industry. The business was launched around the core technology assets of Soft Sight, Inc. (SSI), a digitization software company for the custom embroidery market. Digitization is the process of turning a graphic image, such as a company logo, into computerized stitch instructions which are fed to an industrial sewing machine. This drives the stitching process in the creation of embroidered products.
"Prior to the development of our automation technology, the digitization process required considerable manual effort to complete," said David Goldman, founder of ThreadSmith and creator of SSI automation digitization technology. "I believe we have a great service to offer small businesses and the funding from our investors will allow us to become a key player in the industry."
"ThreadSmith's compelling technology will revolutionize the custom embroidery process," said Scott Murphy, Advantage Capital managing director. "Mr. Goldman is an entrepreneur and visionary with a determination to remake the industry. We expect this investment will enable ThreadSmith to become a leader in an expanding market."
Advantage Capital made its investment in ThreadSmith in connection with New York's CAPCO program, which encourages the flow of investment capital to promising companies located in the state.
About Advantage Capital Partners
Advantage Capital Partners (http://www.advantagecap.com) is a venture capital and small business finance firm focused on early stage companies and other investments supporting state and local economic development. With offices in New York, New Orleans, St. Louis, Austin and other U.S. cities, Advantage has raised more than $800 million in institutional private equity since 1992 and invested in companies located in geographic areas underserved by traditional venture capital.
About the Certified Capital Company program
Advantage Capital Partners is a leading participant in the Certified Capital Company (CAPCO) program, a state economic development tool designed to strengthen state economies by stimulating the flow of investment capital to local small businesses, creating high-paying jobs and increasing state tax revenues. Under a CAPCO program, insurance companies are encouraged to invest in certified capital companies; the state allows the insurance companies to claim tax credits for qualified investments in CAPCO funds. Taken over time, the tax credits generate large pools of private venture capital to be invested in the state. CAPCOs leverage the funds received from insurance companies to invest in qualified small businesses in the state.