MINLASE Interact Systems, Inc. Interact Systems, Inc act's application inter property management syst shifting away from the manual be manage inventories Systems, Inc., has developed software tools that help hotel chains solve application integration problems lication integration server (AIS) provides a two-way interface between central reservation management systems (PIS). At least two important trends in the hotel industry are relevant. First, hotels an Systems away from the manual booking of room reservations, electronic bookings will continue to increase as more 000 are made over the Internet. Second, competitive pre peutive pressures are forcing hotels to implement yield management pro- and to increase customer service. By integrating the CRS and PMS through interact's AIS, the company can better inventories, improve yields, and enhance customer Service All reservation traffic is routed from the CRS to individual hotel properties. This allows Interact Systems to create a tabase that can be used to track customers and to facilitate marketing programs, such as frequent stay or VIP programs, a way of increasing customer satisfaction. Interact forecasts application integration expenditures in the hospitality industry to exceed $1 billion by 2015. Greg Thomas founded interact Systems in 2008 and developed the firm's middleware software and hospitality applica He has twelve years of systems applications experience and currently is Interact's chief technology officer Westskow joined Interact in early 2012 as president and CEO. He had worked in sales and marketing in the software in dustry for more than twenty years. Interact Systems AIS software development, which began in 2008. went through several design changes in 2009. The first product was sold and installed in 2008. Sales were only $500,000 in 2009. However, now that the firm has depend able market-tested AIS products ready to be shipped, revenues are expected to reach $20.8 million in 2015. Greg Thomas founded interact Systems with $50,000 of his own savings plus $50.000 from fiends. Two private inves tors provided an additional $200,000 in 2010. In addition, $1 million was obtained from a venture capital firm. Katile Capi tal Partners, in early 2012 in exchange for an equity position in Interact. The firm currently is seeking an additional $5 million to finance sales growth A A VC is considering providing the additional $5 million. What type of fund (stage specialization, industry focus, etc.) would you approach? In what part of their investing cycle would you hope to approach them? B. Discuss how Interact Systems would expect to fare in the VC screening process involving each element of Figure 125. Discuss typical issues that might be addressed in a term sheet using Figure 12.6 as a reference. MINLASE Interact Systems, Inc. Interact Systems, Inc act's application inter property management syst shifting away from the manual be manage inventories Systems, Inc., has developed software tools that help hotel chains solve application integration problems lication integration server (AIS) provides a two-way interface between central reservation management systems (PIS). At least two important trends in the hotel industry are relevant. First, hotels an Systems away from the manual booking of room reservations, electronic bookings will continue to increase as more 000 are made over the Internet. Second, competitive pre peutive pressures are forcing hotels to implement yield management pro- and to increase customer service. By integrating the CRS and PMS through interact's AIS, the company can better inventories, improve yields, and enhance customer Service All reservation traffic is routed from the CRS to individual hotel properties. This allows Interact Systems to create a tabase that can be used to track customers and to facilitate marketing programs, such as frequent stay or VIP programs, a way of increasing customer satisfaction. Interact forecasts application integration expenditures in the hospitality industry to exceed $1 billion by 2015. Greg Thomas founded interact Systems in 2008 and developed the firm's middleware software and hospitality applica He has twelve years of systems applications experience and currently is Interact's chief technology officer Westskow joined Interact in early 2012 as president and CEO. He had worked in sales and marketing in the software in dustry for more than twenty years. Interact Systems AIS software development, which began in 2008. went through several design changes in 2009. The first product was sold and installed in 2008. Sales were only $500,000 in 2009. However, now that the firm has depend able market-tested AIS products ready to be shipped, revenues are expected to reach $20.8 million in 2015. Greg Thomas founded interact Systems with $50,000 of his own savings plus $50.000 from fiends. Two private inves tors provided an additional $200,000 in 2010. In addition, $1 million was obtained from a venture capital firm. Katile Capi tal Partners, in early 2012 in exchange for an equity position in Interact. The firm currently is seeking an additional $5 million to finance sales growth A A VC is considering providing the additional $5 million. What type of fund (stage specialization, industry focus, etc.) would you approach? In what part of their investing cycle would you hope to approach them? B. Discuss how Interact Systems would expect to fare in the VC screening process involving each element of Figure 125. Discuss typical issues that might be addressed in a term sheet using Figure 12.6 as a reference