Venture Debt
Case Studies

A tech-enabled direct mortgage lender that uses artificial intelligence technology to provide services such as financing for home purchases, customer service, and home refinancing along with cash-out loans, consumer lending, student loans, and more.

Lower engaged us with a need for capital to strengthen their balance sheet for continued investment in internal growth and explore acquisitions through 2023 and beyond.

We worked with our network of lenders to secure their desired capital in the form of a committed debt facility with low fees and warrant coverage and maximum flexibility. With the debt facility in place, Lower could continue to invest in growing its revenue over the coming year without having to dilute through raising more equity capital in a tough market.

Provider of a smart online content filtering device created to deliver screen time management and parental control services. The company offers a comprehensive service to common screen time woes and its features include content filters, time limits, the ability to pause the internet, set device bedtimes, and block specific apps, enabling parents and caregivers to avail services like advice from experts, a space to learn from other parents' experiences, and a blog with timely tips about topics like screen time during social distancing.

Circle is a venture-backed consumer technology company in the market for debt capital to add liquidity to the balance sheet ahead of an equity raise in the pipeline. They had attempted to secure capital from some of the legacy venture debt providers in their network and were hitting roadblocks along the way.

Circle was looking for a small bridge loan to provide cash runway through their Series B raise. After review, we worked with the team on restructuring their spending plan, mitigating cash burn, and securing a facility large enough for them to push out their Series B raise nearly 15 months. As a result, management is able to focus on scaling revenue and achieving a higher valuation for shareholders going into their Series B the following year.

A Venture Debt term loan facility that would fund their continued growth into a larger Series B round where the facility had the opportunity to upsize even more.

Developer of a public relations platform designed to track, measure, share, and grow earned media coverage. The company's platform is a cloud-based, real-time monitoring and database service for tracking TV, radio, online news, podcasts, print sources, and social media platforms including Twitter and Facebook, enabling clients to better understand their earned media values and create customized, shareable reports.

Being close to two decades old, Critical Mention is not your traditional venture debt target. With historically flat top-line revenue over the past few years due to a significant shift in revenue model, there was a significant underlying story for lenders to get comfortable with. After going to market independently several times through 2019 and 2020, Critical Mention engaged 5th Line to effectively secure the capital to fund their growth initiatives.

A $5MM Line of Credit designed to refinance their existing high rate debt that was draining their cash flow each month and fuel their growth through new product development and marketing initiatives.

Provider of rooms intended to create an office room of peace for people at work. The company provides a modern workplace system through affordable, sustainable, and flexible alternatives that make more room for people at work and also build prefabricated, self-assembled, sound-proofed, ventilated, and powered booths, enabling users to make extra room in the budget without compromising quality and provides employees with a place to take a video call or get some uninterrupted time to focus on work.

ROOM was in the market for capital that would fuel their tremendous rebound from the initial impact of the COVID pandemic in early 2020. With strong investor support, they were able to position themselves for a strong recovery. Going into 2021 they saw an opportunity to capitalize on the “Return to office” movement through large portions of the world and sought capital to fuel their growth without taking further dilution to the cap table through equity.

A term loan credit facility to fund their rebounding revenue, expand their international sales channels and bring new products to the market increasing valuation significantly going into a larger equity round.

Developer of a web-based platform designed to assist in teaching on-demand software skills. The company's platform helps students to immediately access pre-configured, project-based instruction, realistic workplace simulations, and on-demand coaching, enabling students to meet the digital skill requirements to succeed in the modern economy.

With robust projections and even stronger than expected performance through 2021, Pathstream was looking for capital options in the form of debt to fund alongside a small equity round.

After review and significant equity investor interest, we brought in one of our venture banking relationships to secure a $6 million term loan to fund the deal alongside the equity investors. With the infusion of capital, Pathstream can focus on sales and marketing, developing channel relationships, and expanding its feature set through future R&D initiatives.

Operator of a bitcoin ATM network intended to help the world gain access to virtual currency. The company's network offers a medium for the general public to buy, sell, and exchange digital currency, enabling users to familiarize themselves with the emerging decentralized, digital currency, and process secure transactions.

Coinme had heavy RD and engineering needs ahead of them as they continued to grow within the digital asset market.

We worked with our network of lenders to secure a $10M Senior Secured Term Loan Facility. With the facility in place, Coinme can now continue to invest in mission-critical RD initiatives that will fuel the growth of the business as they look to raise their next round of capital.