Stratacache announces fund targeting struggling start-ups

I have heard a few times lately that some software deals are getting done with companies at least in part by the vendor effectively buying into the company to win the deal.

I think that just happened to me, actually, with a happy client nonetheless changing dance partners.

So it was interesting to read on aka that Stratacache isn’t, like some other companies, quietly going around making this sort of offer. They have a fund.

Stratacache, the privately held digital signage software specialist, has assembled a $25 million fund to target technology and media acquisitions in the digital signage market. The company is particularly looking for complimentary solutions that will bolster its ActiVia software product.

CEO Chris Riegel feels that there are many early stage companies in the market with good products and a handful of customers that are under real pressure, commenting that, “Although the out-of-home advertising segment is one of the fastest growing segments in the industry, many venture-backed or privately held companies were expecting unrealistic growth in the short term and are now running into significant financial difficulty.”

In other words, we know you’re in trouble, but you’ve got some potential. We’ll help you keep the lights on, but you’re getting rolled up and you’re now using our platform.

Beats going under, and there’s quite a few ad-driven networks that expected to be at 1,000 sites but are at 100 who are huffing and wheezing right now as they compete in a very fragmented, confusing and tight advertising market.