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Venture Debt
Case Studies
Case Studies
We like our work to speak for itself
Our clients are our proudest accomplishments. We pride ourselves on going the extra mile for every client with whom we work.
Before we engage any client we conduct a thorough review and vet the market to present feedback. We want to show our clients what we can do even before we get engaged.
Before we engage any client we conduct a thorough review and vet the market to present feedback. We want to show our clients what we can do even before we get engaged.
Extole Developer of a social advocacy platform designed to conduct marketing by driving customer activation, along with customer acquisition. The platform assists brands in finding and reaching influencers, through the usage of first-party and social network data about advocates, enabling clients to harness the power of online sharing to the benefit of their bottom line and engage consumers across all touchpoints including a brand's website, email, and social networks. |
Their Goal
To refinance their existing lender in favor of a long-term, cashflow friendly capital solution in a challenging credit environment.
The Situation
Older equity sponsors with a balloon payment combing due, they needed to find a creative debt solution that would repay the existing debt, add some more to the balance sheet while serving to manage cashflow regarding debt servicing with a longer-than-average interest-only period.
Our Solution
Our go-to lending partners were able to offer a unique structure to the company, allowing them to not only refinance their existing debt but add additional working capital to their balance sheet as they continue to grow.
We worked hand-in-hand with both lender and company management to put together a creative solution outside the typical profile for each - in order to structure a deal equitable for both parties.
We worked hand-in-hand with both lender and company management to put together a creative solution outside the typical profile for each - in order to structure a deal equitable for both parties.
BrightOrder Developer of truck and fleet management software designed to help solve vehicle control problems. The software automates activities by understanding the point of failure so that one can schedule the timing and location of repairs improving vehicle uptime and tracking history to enhance future purchases, enabling clients to better optimize efficiency in vehicle repair and make better-informed decisions at affordable costs. |
Their Goal
A lending solution more flexible than a bank, but something more cost effective than than an equity raise.
Their goal was to secure a scalable capital solution allowing them to continue funding their growth.
Their goal was to secure a scalable capital solution allowing them to continue funding their growth.
The Situation
Being a founder-funded business, over two decades old, traditional lenders found the profile challenging without an institutional equity sponsor.
Banks were proving less flexible in their underwriting capacity with challenging credit markets and with equity being a route to avoid with lower valuations for tech companies, they needed something that met their flexibility goals.
Banks were proving less flexible in their underwriting capacity with challenging credit markets and with equity being a route to avoid with lower valuations for tech companies, they needed something that met their flexibility goals.
Our Solution
We secured a $3.5MM CAD Credit Facility that allowed them to refinance their existing bank debt while also providing them room to grow into more capital utilization.
Their new lending solution serves with minimal covenants and flexible draw schedules, allowing them to utilize the funds while effectively managing their overall cost of capital.
Their new lending solution serves with minimal covenants and flexible draw schedules, allowing them to utilize the funds while effectively managing their overall cost of capital.
Thrio Developer of a platform intended for improving customer prospects. The company's platform provides full support for SMS, chat, bot, social, email, web, bots & virtual agents, automated campaign manager, and more, thereby offering powerful automation rules to drive efficient, effective workflows |
Their Goal
Thrio was in the market for a debt solution to fund their growth as they deployed their backlog of customer contracts in order to avoid taking on further equity dilution.
The Situation
Being outside of traditional "SaaS" business model, several of the "go-to" lending solutions were not available.
Having a specific need, with a unique business model in how they operate and are structured, they needed a lender who would understand the story of the business...
Having a specific need, with a unique business model in how they operate and are structured, they needed a lender who would understand the story of the business...
Our Solution
Our lending partner structured a favorable, cost-effective debt facility that served to fund management's capital needs to execute on their strategy.
With the raise, they were able to ramp up operations to deploy customer contracts quicker, while avoiding raising equity in challenging valuation markets.
With the raise, they were able to ramp up operations to deploy customer contracts quicker, while avoiding raising equity in challenging valuation markets.
Their Goal
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.
The Situation
With the mortgage market softening as the Fed's rate hike campaign was getting underway, lenders generally were steering away from companies heavily exposed to the market.
Our Solution
Reviewing with our network of lenders, we secured several debt options to provide 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.
ROOM 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. |
Their Goal
ROOM had a bank facility in place, amortizing and sucking up their cashflow every month.
In the market for a new lender that could provide additional capital to fund their rebounding revenue pipeline, they engaged 5th Line to lead the way.
In the market for a new lender that could provide additional capital to fund their rebounding revenue pipeline, they engaged 5th Line to lead the way.
The Situation
COVID was not good to physical goods companies and office space alike. ROOM was a victim of both.
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.
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.
Our Solution
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.
Pathstream 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. |
Their Goal
Pathstream board and management was looking for optimization of cost-effective debt while providing flexibility as they grew.
The Situation
With historical growth but largely forward-looking "up and to the right" projections...there was a gap in the company's view of their debt servicing ability and the market's.
We came in to bridge that gap in conveying the value proposition to several lenders who were able to structure favorable terms.
We came in to bridge that gap in conveying the value proposition to several lenders who were able to structure favorable terms.
Our Solution
We ultimately worked to structure a del with 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.
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.
Coinme 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. |
Their Goal
Coinme had heavy RD and engineering needs ahead of them as they continued to grow within the digital asset market.
The Situation
With alternative investor backing and being crypto-focused, the market for lenders looking to lend was tight.
Most capital providers in this space are largely equity-focused, with lenders being few and far between. Combined with a softening in the crypto markets...
Most capital providers in this space are largely equity-focused, with lenders being few and far between. Combined with a softening in the crypto markets...
Our Solution
One of our most creative lending partners put together a $10M Senior Secured Term Loan Facility to capitalize the company without requiring any equity co-investment. 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.
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