{"id":2972,"date":"2018-08-23T11:32:28","date_gmt":"2018-08-23T11:32:28","guid":{"rendered":"http:\/\/reformingretail.com\/?p=2972"},"modified":"2019-01-23T09:35:45","modified_gmt":"2019-01-23T15:35:45","slug":"revel-gets-a-quiet-6m-infusion-but-what-does-it-mean","status":"publish","type":"post","link":"https:\/\/reformingretail.com\/index.php\/2018\/08\/23\/revel-gets-a-quiet-6m-infusion-but-what-does-it-mean\/","title":{"rendered":"Revel Gets A Quiet $6M Infusion. But What Does It Mean?"},"content":{"rendered":"

Someone we know actively tracks SEC Form D filings. A Form D is filed when a private company raises capital. The government asks to be alerted to securities-related activities so this is where you go. On July 2, 2018 Revel raised another $5.3M of $6.3M in equity<\/a> from their owners Welsh Carson.<\/span><\/p>\n

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What’s the money for? Is it a bridge round? This is not exactly a large amount of capital to hit critical milestones… in fact it reads more like a payroll check.<\/p>\n

Revel\u2019s new management tells us to look at the bigger picture.<\/p>\n

First, Revel has brought in all new senior management. The company would not have been able to convince senior management to leave their previous jobs if the ship was sinking.<\/p>\n

Second, Revel is making an active push to move more of its workforce to Atlanta. It will still maintain its San Francisco HQ, but it\u2019s not exactly getting cheaper to live in California. Atlanta is home to fintech, some great universities, and an imploding, legacy POS company known as Aloha. \u201cWe\u2019ve cut from 500 to 200 hospitality engineers since 2015, and NCR\u2019s culture is strangling the good people out of Aloha,\u201d comments a former NCR employee. Revel gives these people a place to land.<\/p>\n

We’ve heard it whispered in the private equity communities that Welsh Carson, Revel’s owners, is looking to sell the company. Are they doing so because they’re tired of funding a company that they don’t think will earn a return?<\/p>\n

Revel management tells us that\u2019s not the case.<\/p>\n

\u201cEverything is always for sale if the price is right, but WCAS has an operating plan to achieve a good return on their investment. They have capital to invest to help us achieve that plan, and we think the market has more than enough opportunity for us to execute.\u201d<\/p>\n

We expect to hear more from Revel as its new leadership comes out of its customer conference in late September.<\/p>\n

Will Revel reemerge as serious contender in POS? It’s looking possible.<\/p>\n