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Don Sackett founded Innov-X Systems, Inc., in 2001 with several of his former co-workers by raising $800,000 in start-up capital from family, friends and angel investors.
The management team originally planned to sell online x-ray equipment for manufacturing applications; however, they soon learned that there was great demand in the consumer marketplace for handheld units. Innov-X began selling its first handheld units in 2002, and the early demand for the product caused a need for growth capital.
In 2003, Rand (an SBIC) was able to negotiate an investment term sheet acceptable to both Innov-X and an investors group. In 2004 and 2005, Rand funded a total of $600,000 of investment capital into Innov-X.
In 2006, new regulations regarding testing of noxious metals in electronics resulted in unprecedented sales and demand for Innov-X’s novel handheld instruments. Rand’s SBIC debentures were repaid and Rand realized a gain of $2.2 million from a partial sale of its equity holdings. As part of the Summit Financing, Rand re-invested over $1 million back into the company, as a participant in the new financing.
Innov-X continues to experience record revenues. It has grown from 17 to 150 employees.