New Private Investment: Member Minded

I recently closed my first private investment of 2009 in a company called Member Minded, which is headed by Todd Earwood here in Louisville.  A healthy sum of money for a healthy minority stake.

Member Minded has a suite of technology tools (and awesome support!) that make membership-based organizations more efficient and effective.

Think intranets and other “software as a service” online technologies for groups like your local homebuilders’ association, a chamber of commerce or any group that services a lot of members with few employees.

There are several reasons I pullled the trigger:

1. Todd.  He’s smart, honest, and works his ass off.
2. Customers gave HIM the idea for the products, not the other way around.  I love businesses that spring up to meet proven, unmet demand.
3. Member Minded has an all-star staff that has served their top customer, Greater Louisville Inc…..a nationally top-ranked chamber that is a true leader in the use of technology.  Member Minded has lived inside of the most demanding, cutting-edge customer possible for 6 years and made their organization better. In other words, no one “gets” chamber/association needs like Todd and his staff…NO ONE.
4. The scale is national, possibly global.
5. Member Minded takes a Zappos-like approach to supporting their customers.  Anyone can offer technology, but these guys support it with a domain knowledge that no other company can match.  I’m positive that every sale MM makes will be a customer for life.

That’s it.  Valuation of a small business was easy because we both knew I bring more to the table than money and we found a point where the value of everyone’s stake went up BECAUSE of the combination.

Let the winning commence.