“Nashville getting tech-savvy: Local investors see opportunity in tech investment”

Local experts are eyeing technology as a good place for future investment and they say finding a company with a strong management team is key.

"Companies with compelling technology coupled with strong management teams are finding funding," says Sid Chambless, executive director of the Nashville Capital Network.

Other keys to look for, tech insiders say, include a strong financial growth plan and an addressable market.

Tom Wylly, senior partner of Brentwood Capital Advisors, says investors are interested in technology because of its growth. They're looking for technology companies in rapidly growing markets.

Laura Campbell, owner of Laura Campbell & Associates, personally invests in private tech companies and agrees that looking at a company's management is a major key to investors.

"For investing in private companies of any kind - management, management, management," Campbell says. "That would be the most important thing that I would look for - their record of success. It sounds simplistic, but it's very important."

Campbell invested in a new local company, nTelagent in Franklin, which is a combined health care and technology company.

Campbell says nTelagent has many of the traits she looks for including recurring revenues, which indicate early market acceptance of the technology - meaning customers are buying the product. She says the company is also a sustainable, multi-faceted business.

"I have spoken with a lot of people who see this [nTelagent] as one of the hottest technology companies that are in Nashville," Campbell says.

New tech ventures are starting up and growing at much faster rates than in previous years, says David Condra, CEO of Dalcon Communication Systems, a communication and technology company.

Bob Bolen of Bolen | Dodson & Associates, a Brentwood wealth management company, invests in technology companies for his clients. He's seen more interest in tech investments in the last six to nine months, especially since real estate markets are down.
"After years of underperformance, it's still a part of the market that's relatively cheap given its historical valuation ranges," Bolen says. "When you look at what part of the market makes sense, technology makes sense."

For public company investing, Bolen says larger companies as opposed to more speculative companies are a good bet. He looks for a reasonable price-earnings ratio relative to the growth rate "to make sure you're not overpaying," he says.

Also important is a company's track record of meeting or beating expectations, since stocks fluctuate on this factor, he says.