MEET EPHESOFT
Ephesoft was founded in 2010 by Ike Kavas. Ike, with an educational background in electrical engineering and computer architecture, immigrated to the United States from Turkey, with the dream of starting his own company. Before starting Ephesoft and at his prior role, Ike saw firsthand the consequences of others making decisions that were detrimental to customers and lacked innovation. As a result, Ike employed the mindset of valuing innovation to drive exponential growth in Ephesoft.
Ephesoft is an intelligent document processing software company. The Company develops technology that makes meaning out of unstructured data for decision-makers worldwide. Using supervised machine learning and a focus on efficiency and reliability, Ephesoft’s mission is to help organizations maximize productivity.
Kavas impressively bootstrapped Ephesoft for seven years before the Company’s first significant VC investment. Understanding the importance of preserving ownership in his business, Ike sought out non-dilutive capital to help grow his business. The Structural Capital team had a couple of touchpoints into Ephesoft, and discussed the capabilities to refinance and upsize the small, existing bank line with the management team. The Ephesoft team appreciated Structural’s responsiveness and support, and signed a term sheet to provide a larger, multi-tranche debt facility, allowing Ephesoft to accelerate go-to-market initiatives.
New Product
Ephesoft had demonstrated successful product market fit around its flagship product, building a strong core business and dynamic customer base around the offering. With capital from Structural, the Company was able to invest in an exciting new product roadmap with potential to expand Ephesoft’s market opportunity.
Lender Flexibility
The credit facility was structured to have additional capital unlocks based on achievable milestones set with Ephesoft. However, as Ephesoft launched an M&A process to be acquired, Ike and team required incremental capital to navigate a potential sale of the Company. The Structural team was able to offer the final tranche of the loan facility ahead of schedule to provide the much-needed capital to Ephesoft, along with extended amortization relief.
Successful Exit
After a lengthy M&A process, Ephesoft agreed to merge with Kofax, which had just been purchased by Private Equity players TA Associates and Clearlake Capital, representing a full-circle moment for Ike, who spent a number of years earlier in his career with Kofax. Ike currently serves as Senior VP of AI & Innovation for Kofax.
“The Structural team provided every aspect of support to Ephesoft, from introductions to possible strategics to offering flexible capital. I was grateful to have Structural as part of my team.”
Ike Kavas, Founder & CEO Ephesoft
