Russell Howard Of BCI Enjoys Challenge Of Supporting Economic Growth In The Berkshires

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Russell W. Howard, managing director of The Berkshires Capital Investors (BCI), remains optimistic about the prospect for Internet-related businesses in the area. “We definitely are in somewhat turbulent times now with the public markets. There’s been a lot of publicity ... with the crash of a lot of the public Internet stocks,” he said in an interview last week at BCI’s offices at the Williamstown Financial Center. “But I think really that the message is that not all Internet companies are the same by any means.” Information technology businesses developing the Berkshires cannot be easily categorized. “They all serve different markets, and they’re all going to have different dynamics to their business,” he said. “We think as of now that we’ve got a pretty good capital base for the ones that we’ve invested in, and still are very optimistic that a lot will become ... sustainable, permanent businesses in the region that will employ a lot of people.” Howard has been with BCI nearly a year, having started last March. He succeeded Matt Harris, BCI’s original managing director. Before coming to BCI, Howard worked for about five-and-a-half years at GE Equity, the venture capital arm of GE Capital in Stamford, Conn. He worked in the technology and communications investing area. Before that he worked for about four years with Equitable Capital Management in New York City in their corporate finance group in a variety of investing activities. He graduated from the University of Virginia’s business school in 1990, and is an 1984 graduate of Williams College. Right out of Williams, Howard worked for four years with a consulting firm called The Futures Group in Glastonbury, Conn. He’s originally from Storrs, Conn. A career shift What brought him to BCI? “It specifically was the opportunity to come in and have a very active involvement with BCI, the investments we make, the companies we invest in ... the challenges and the opportunities to try to help stimulate the economic growth in the region,” he said. This was interesting coming from GE Equity, which did larger transactions and more “later-stage venture capital” with companies that have already received early-stage capital investments, he said. “So it’s not quite as hands-on. Companies are more mature,” Howard said of his previous position. “While the opportunity here with BCI to come in and succeed Matt Harris, who had done a great job ... building up the BCI for a couple of years, was a chance to be much more of an early-stage investor with companies that are just getting going, provide a lot of hands-on support and help, and really feel much more of a part of the companies and hopefully their ultimate success.” In addition to being a career shift to early-stage venture capital business, the move to BCI also offered a chance to join a venture capital firm “that was doing interesting things from an investment standpoint, but also has this whole other side benefit of helping to promote economic growth in an area, which was kind of neat combination,” he said. Thirdly, BCI offered an opportunity for Howard and his family — wife Christina, and daughter Lauren, 17 months old — to move up to the Berkshires, different from where they had lived before. “It was something that we thought would be kind of fun to try.” How does he spend his week? Howard broke his time into three categories: evaluating new investment opportunities; working with the portfolio companies BCI already has investments in, doing such things as going to board meetings or helping them raise more funds; and attending to BCI administrative matters as managing director. BCI has over the years invested in such companies as eZiba.com; Streetmail; PRG, now known as MindBranch; and HealthShare Technology, Inc., an Acton firm with a technical team at MASS MoCA. BCI investments in Central and South Berkshire include Berkshire Wireless in Lee, and Waggin Tails, “the high-end, super-premium pet business,” also in Lee. In all, BCI has invested capital in 15 or 16 companies, most in Northern Berkshire, some in Central or South Berkshire or elsewhere in Massachusetts. “Somewhat of a slowdown” Howard said that six months ago he was probably spending half of his time on new investment opportunities, perhaps 30 percent on portfolio companies, and about 20 percent on administrative tasks. Now, at least 50 percent of his time is spent working with the companies BCI has investments in, and 25 to 30 percent of his time on new investment opportunities, and the balance on administrative tasks. One reason for this is that BCI has now invested about two-thirds of its second fund, with perhaps money for one or two more new investments out of this fund. Another reason for less time spent on new investment opportunities is what has gone on in the broader capital markets, both in public markets as well as the venture capital business. “There has been somewhat of a slowdown in the amount of new entrepreneurial activity,” he said. “If you went back six or nine months, there was just this huge amount of optimism and everyone was thinking that they were going to get rich on the Internet.” Is there a danger to the Berkshire economy from this slowdown or downturn? “I don’t see anything like a real danger to these companies or to the economy that’s been built up,” he said. In the BCI model from the start, companies raised relatively small amounts of money and had to try to make that capital last as long as they could and build a business more in the traditional way, with prudent spending matched with growth of the business, he said. In the wider business world, Internet companies that failed “were things that had a lot of money thrown at them, scaled up way too quickly.” When this approach didn’t work out, or if it was an unsustainable business model, they had no choice but to go out of business — “if they looked out to the future there was no way to scale it back and achieve profitability,” Howard said. “Most of the companies, I think, up in this area have been in general much more kind of prudent in ... achieving and trying to meet their business plan and their objective,” he said. “So I think we have a lot more stability up here at this point. “And it’s not to say that all the companies are profitable at this point and will never need additional capital — that’s definitely not the case,” he said. “But I think most of the firms that I’m aware of are pretty well situated for at least the foreseeable future from a cash standpoint.” It was noted that Streetmail and MindBranch, both based in North Adams, have recently had layoffs. “I was actually pretty pleased with, I think, how the local people and some of the press seemed to handle that in that realizing that there is kind of a natural kind of evolution of a business, especially ones that are early stage,” Howard said. “They’re going to go down some paths and try some things. ... Some will work great, some won’t work great. And there’s always going to be some tinkering with the business model, with what’s working and making sure that you’re living within your means.” This is the process those companies are going through, especially given the overall environment in which people know that capital is not limitless. “Folks are tightening the belt a little bit to make sure that they’re going to be there for the long-term. And that’s really, I think, the key message that we’re trying to impart to the companies that we have investments in ... that we want to try to build companies that are going to be around and be sustainable,” Howard said. “We’re not looking to have a huge home run in a year or two or else the things goes belly up, and we’re just going to roll the dice and see. “We’re really looking to try to help build companies that are going to be sustainable and profitable someday, and will be an important part of the local economy,” he said. “What we’ve been spending more of our time on is trying to make sure that ... the current strategies, the ... cash expenditure levels of our existing companies are kind of prudent given the uncertain times that we’re in.” BCI has a staff of three full-time employees. Three managing partners, Matt Harris, George Kennedy, and Bob Magill, function something like a board of directors. BCI also has a small group of limited partners who have invested with BCI who make up an advisory committee. The first BCI fund started in 1997 with $5 million raised, and this was completely invested by the middle of 1999. BCI next raised $15.7 million for a second BCI fund. A third BCI fund is in the back of officials’ minds but is nothing that’s specifically in the works, Howard said. Relationship with Village Ventures Matt Harris, BCI’s first managing director, in January 2000 founded Village Ventures with Tripod Inc. cofounder Bo Peabody. Peabody is chairman and Harris is CEO of this Williamstown firm that services a network of nine early stage venture capital funds operating in seven states. It aims to bring venture capital to areas that are underserved by traditional sources of capital. Howard said BCI is an independent fund and an affiliate fund of Village Ventures. Village Ventures is an attempt to replicate the success BCI had in the Berkshires in other regions across the country. BCI works closely with Village Ventures in a couple of ways. “The way that we work with them is that we are still kind of the early-stage, get-things-going investor for the Western Mass. region that we’ve always been,” Howard said. “Village Ventures, through our relationship with them, co-invests about 50 cents on the dollar with us side-by-side in all these deals. That’s part of their business model ... to co-invest with the funds, and then provide ... a lot other support services and other ways to help out us and the portfolio companies we invest in.” “Village Ventures is out here as kind of a resource for us to be able to use in various ways to help us to do a better job ... or add more value to the companies we’ve invested in,” Howard said.
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Friday Front Porch Feature: A Charming House Like New

By Breanna SteeleiBerkshires Staff

The home prior to renovations.

NORTH ADAMS, Mass. — Are you looking for a newly renovated home with great space? Then this might be the perfect fit for you!

Our Friday Front Porch is a weekly feature spotlighting attractive homes for sale in Berkshire County. This week, we are showcasing 100 Autumn Drive.

This three-bedroom, two-bathroom split level was built in 1965 and is 1,396 square feet on 0.32 acres.

The house was completely renovated recently. It includes a one-car garage, and comes with appliances including a dishwasher and stove/oven, and other major appliances.

The house is listed for $359,500.

We spoke with owners Michael Zeppieri and Chris Andrews, who did the renovations. Zeppieri is an agent with Alton and Westall Real Estate Agency.

What was your first impression when you walked into the home?

Zeppieri: I purchased this home to do a full renovation flip and saw tremendous potential in this mid-century split level home that had not been updated since it was built in the 1960s, in a great North Adams neighborhood.

 

Andrews: The house was a much different house when we first purchased it in 2022 (photo attached is from about 2010.)  The interior was painted all in dark colors and we brightened it up with neutral colors. The transformation makes you feel like you are in a totally different house.  

 

 

What were the recent renovations, any standout design features?

 

Zeppieri: The house has had a complete reconfiguration including new kitchen with high-end appliances, ceramic tiled baths, hardwood floors, new windows and roof ... just to name a few.  All a buyer has to do is move in and enjoy.

 

Andrews: Yes, we renovated the entire house.  New windows, new roof, all new custom black gutter system, new blacktop driveway, hardwood floors were installed through out the house. New kitchen and bathrooms as well as painting the exterior and interior of the house.  New paver patio in the back yard.

 

What kind of buyer would this home be ideal for?

 

Zeppieri: The buyer for this home could be a first-time homebuyer or a retiree ... the location is close to attractions in North Adams ... and the property is located in Autumn Heights, which is a very small residential development with several long-term owners.

 

Andrews: This home is truly ideal for a variety of buyers. Whether a first-time homebuyer, a small family or even someone looking to downsize from a larger home.

 

 

What do you think makes this property stand out in the current market?

 

Zeppieri: The location, price and move-in condition of this home make it a true market leader in the North Adams Market.

 

Andrews: This house is completely renovated and in a desirable location of North Adams. The natural light in the home really makes the interior pop. And with all the upgrades the home stays quite cool in the summer months.

Do you know any unique stories about the home or its history?

Zeppieri: This home was built for the Gould family in 1969 and they lived there till 2010. It was always a family home during that time in which the Goulds had two children ... and Virgina Gould managed Mohawk Forest Apartments and was a very active resident of North Adams.

 

Andrews: Built in about 1965.

 

What do the current owners love about this home?

 

Zeppieri: As the current owner it was a fun project to transform this home and get it ready for its next adventure with a new family to enjoy for many years.

 

Andrews: No one has lived in the house since we purchased the home. The new owners would be the first to live in the house since the renovations have been completed.

 

 

What would you say to a buyer trying to imagine their life in this space?

 

Andrews: I would suggest seeing the house either on a sunny day or at twilight to really get a vision of how special the home feels.  

 

You can find out more about this house on its listing here.

*Front Porch Feature brings you an exclusive to some of the houses listed on our real estate page every week. Here we take a bit of a deeper dive into a certain house for sale and ask questions so you don't have to.

 

 

 

 

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