Cyberlab Seeks $25M Model

Hoping to eventually morph itself into an operating company, Internet incubator CyberLab Ventures Inc. is in the midst of marketing a $25 million equity offering.

Proceeds from the deal will be used to make new investments, repay debt and to maintain an undiluted position in existing portfolio company CarrierPoint, an Atlanta-based e-marketplace for the cargo transportation industry, which was expected to close a venture round last Friday in the neighborhood of $22 million.

One major corporate investor has expressed an interest in purchasing the entire CyberLab Ventures offering and the deal could be finalized within 90 days, said Stephen Molinari, founder and principal of CyberLab Ventures. While that deal works itself out, the Fort Lauderdale, Fla.-based incubator is raising a $5 million bridge loan so that its investment schedule is not interrupted.

Right now, the firm is looking at an online payment processing company that also resells bandwidth and offers high-speed Web hosting.

“This is the type of leading-edge infrastructure company that fits our model,” Molinari said.

That model, however, may change once the equity funding comes through. Indeed, the venture firm, which has traditionally modeled itself after Safeguard Scientifics Inc., may soon try to reposition itself away from the incubator space.

“We originally intended to be an operating company, but things kind of changed due to certain relationships we made,” Molinari said. “Our investor is on board with [the possible change], and we’ll see where we go once the funding is completed.”

Molinari added that CyberLab Ventures will soon look to add two new managing directors. –