© All Rights Reserved. 5th Line Capital, LLC 2024
Venture Debt
Case Studies
Case Studies
We like our work to speak for itself
Extole
Company Background: Extole is the customer-led growth platform for marketers. Having influenced over $4 billion in revenue, Extole is well equipped to guide brands toward continuous growth through actionable and measurable referral programs. The company facilitates the conversion of satisfied customers into advocates, promoting person-to-person sharing and driving business growth.
Objective: Facing an impending bullet payment in 2023 amid challenging equity markets, Extole had outgrown its previous lender and needed a new partner to offer refinancing support. Given the company’s past collaboration with 5th Line, the CFO turned to our team to explore the possibility of engaging our
services to secure a new lender and refinance their existing loan.
Top Concerns:
Results:
— Rob Costanzo, CFO, Extole
Objective: Facing an impending bullet payment in 2023 amid challenging equity markets, Extole had outgrown its previous lender and needed a new partner to offer refinancing support. Given the company’s past collaboration with 5th Line, the CFO turned to our team to explore the possibility of engaging our
services to secure a new lender and refinance their existing loan.
Top Concerns:
- Wanted to secure a new lender when capital markets were constricted.
- Needed to refinance their existing loan.
- Wanted to scale the business over time sustainably.
Results:
- Secured a new debt facility to obtain a better interest rate.
- Refinanced Extole’s existing loan in full.
- Ensured capital availability for sustainable growth.
— Rob Costanzo, CFO, Extole
BrightOrder
Company Background: BrightOrder is a 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.
Objective: BrightOrder had a bank loan in place coming up for renewal. Yet, with their bank being more limited in lending abilities in a tighter credit market, the company opted to explore alternative lending solutions. They were referred to 5th Line who ultimately ran a competitive process for them, rendering several term sheets to them to refinance their bank with a much larger debt facility.
Top Concerns:
Results:
“5th Line, under the leadership of James Turner, has developed an extensive portfolio of “Potential Investors “ to meet the needs of most borrowers. By having 5th Line prequalify investors, based on their intensive deep dive into our operations to ensure there was a strategic alignment between all parties, my job was significantly simplified allowing me to focus more on deal structure. Time is Money, my time was spent where I add the most value, and 5th Line made that happen!”
— Patrick Brooker, BrightOrder
Objective: BrightOrder had a bank loan in place coming up for renewal. Yet, with their bank being more limited in lending abilities in a tighter credit market, the company opted to explore alternative lending solutions. They were referred to 5th Line who ultimately ran a competitive process for them, rendering several term sheets to them to refinance their bank with a much larger debt facility.
Top Concerns:
- Wanted to secure a scalable capital solution to continue funding growth.
- A tighter credit market forced their bank to limit lending.
- Needed an expert partner to help secure alternative lending.
Results:
- Closed a $3.5MM facility with a new lender.
- Refinanced the company’s existing bank debt.
- Established financial avenues for the company to grow capital.
“5th Line, under the leadership of James Turner, has developed an extensive portfolio of “Potential Investors “ to meet the needs of most borrowers. By having 5th Line prequalify investors, based on their intensive deep dive into our operations to ensure there was a strategic alignment between all parties, my job was significantly simplified allowing me to focus more on deal structure. Time is Money, my time was spent where I add the most value, and 5th Line made that happen!”
— Patrick Brooker, BrightOrder
Thrio
Company Background: Thrio is a developer of a platform intended for improving customer prospects. The company's platform provides full support for SMS, chat, social, email, web, bots & virtual agents, automated campaign manager, and more. Overall, the platform offers powerful automation rules to drive efficient, effective workflows.
Objective: 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. Being outside of the traditional "SaaS" business model, several of the "go-to" lending solutions were not available. Thrio needed a creative debt solution and partner who would understand the unique space in which they operated: Call Center as a Service, or “CCAS.” With a strong pipeline and a bright outlook ahead, they needed a lender who would understand how to get behind the business. So they hired 5th Line to bring competitive options to the table.
Top Concerns:
5th Line's Solution: We were able to identify and vet new lending partners for Thrio, and worked together to choose the best fit. Our lending partner structured a favorable, cost-effective debt facility that served to fund management's capital needs to execute their strategy. Thrio’s new lender was able to provide sufficient liquidity to the company for them to get to profitability while still investing in growing their business. With the raise, they were able to ramp up operations to deploy customer contracts quicker, while avoiding raising equity in challenging valuation markets. With this new financial picture of the company, 2024 is focused on continuing to grow the business while entertaining equity offers.
Results:
Objective: 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. Being outside of the traditional "SaaS" business model, several of the "go-to" lending solutions were not available. Thrio needed a creative debt solution and partner who would understand the unique space in which they operated: Call Center as a Service, or “CCAS.” With a strong pipeline and a bright outlook ahead, they needed a lender who would understand how to get behind the business. So they hired 5th Line to bring competitive options to the table.
Top Concerns:
- Needed a debt solution to help fund their growth.
- Wanted a funding option that provides liquidity.
- Required funding without an equity raise.
5th Line's Solution: We were able to identify and vet new lending partners for Thrio, and worked together to choose the best fit. Our lending partner structured a favorable, cost-effective debt facility that served to fund management's capital needs to execute their strategy. Thrio’s new lender was able to provide sufficient liquidity to the company for them to get to profitability while still investing in growing their business. With the raise, they were able to ramp up operations to deploy customer contracts quicker, while avoiding raising equity in challenging valuation markets. With this new financial picture of the company, 2024 is focused on continuing to grow the business while entertaining equity offers.
Results:
- Gained significant liquidity
- Brought Thrio to profitability
- Avoided raising equity in challenging valuation markets
Lower.com
Company Background: Lower.com is a venture-backed direct mortgage lender using artificial intelligence technology to simplify the application process, offer more efficient customer service, and provide lower rates for mortgages, refinancing, and home equity loans.
Objectives: As federal interest rates increased, many lenders became reluctant to work with companies in industries affected directly by the changing market. With a need for capital to strengthen their balance sheet, fuel continued investment in internal growth, and explore acquisitions through 2023 and beyond, Lower connected with 5th Line to find more credit opportunities with favorable terms.
Top Concerns:
5th Line's Solution: 5th Line turned to our network of lenders and rigorously reviewed terms to find the best options despite the softening of the market. We presented several debt options in the desired form of a flexible committed debt facility with low fees and warrant coverage. After securing a debt facility, Lower strategically directed its resources towards revenue growth over the following year, preserving equity by avoiding the need for additional investments or alternative financing methods.
Results:
"5th Line helped us identify lenders, get into the conversation, and complete a debt raise in a historically difficult market. The access to capital helps us play offense and continue to invest in growth while many competitors cannot. James was a pleasure to work with and provided great advice and counsel throughout the process."
— Gautam Kumar, Lower.com
Objectives: As federal interest rates increased, many lenders became reluctant to work with companies in industries affected directly by the changing market. With a need for capital to strengthen their balance sheet, fuel continued investment in internal growth, and explore acquisitions through 2023 and beyond, Lower connected with 5th Line to find more credit opportunities with favorable terms.
Top Concerns:
- Sought capital for growth that wouldn’t further dilute their equity.
- Needed a debt facility with low fees and warrant coverage.
- Wanted to focus on growing revenue and exploring acquisitions.
5th Line's Solution: 5th Line turned to our network of lenders and rigorously reviewed terms to find the best options despite the softening of the market. We presented several debt options in the desired form of a flexible committed debt facility with low fees and warrant coverage. After securing a debt facility, Lower strategically directed its resources towards revenue growth over the following year, preserving equity by avoiding the need for additional investments or alternative financing methods.
Results:
- Secured a flexible debt facility with low fees and warrant coverage
- Raised funding without increasing equity dilution
- Completed a debt raise in a historically challenging market amid the Fed rate hike
"5th Line helped us identify lenders, get into the conversation, and complete a debt raise in a historically difficult market. The access to capital helps us play offense and continue to invest in growth while many competitors cannot. James was a pleasure to work with and provided great advice and counsel throughout the process."
— Gautam Kumar, Lower.com
ROOM
Company Background: ROOM, a VC-backed workplace solutions company, offers a range of ventilated, powered, and modular Office Pods. With pods for focused individual work, meetings, and open office layouts, ROOM helps create customizable office spaces for improved productivity and collaboration. With the onset of the COVID-19 pandemic and subsequent office closures, ROOM faced a challenging period. To navigate industry and market changes, they needed funds to pivot their product offerings and increase valuation before their next equity round.
Objective: Burdened with an existing bank facility that wasn’t serving their needs, ROOM sought a new lender to help them manage cash flow and bring in additional capital. ROOM also planned to kick off a revenue pipeline rebound going into 2021 alongside the “return to office” movement. They connected with 5th Line to receive guidance engaging lenders and negotiating favorable loan terms. Their goal was to secure capital to expand their international sales channels and adapt to changing market needs without further diluting their equity.
Top Concerns:
5th Line's Solution: 5th Line helped ROOM secure a term loan credit facility to take advantage of new revenue opportunities coming out of the COVID-19 pandemic. This funding empowered ROOM to expand their international sales channels and bring innovative new products to market. By leveraging renewed financial support, ROOM was able to navigate changes in demand and position the company for future growth. They also increased their valuation and set the stage for a successful equity round.
Results:
Objective: Burdened with an existing bank facility that wasn’t serving their needs, ROOM sought a new lender to help them manage cash flow and bring in additional capital. ROOM also planned to kick off a revenue pipeline rebound going into 2021 alongside the “return to office” movement. They connected with 5th Line to receive guidance engaging lenders and negotiating favorable loan terms. Their goal was to secure capital to expand their international sales channels and adapt to changing market needs without further diluting their equity.
Top Concerns:
- Facing a changing market, ROOM needed funds to innovate, expand internationally, and introduce new product offerings.
- Their current bank facility was insufficient, and they wanted to work with an alternative lender.
- Coming up on another equity round, they didn’t want to dilute more equity and needed funding to get there.
5th Line's Solution: 5th Line helped ROOM secure a term loan credit facility to take advantage of new revenue opportunities coming out of the COVID-19 pandemic. This funding empowered ROOM to expand their international sales channels and bring innovative new products to market. By leveraging renewed financial support, ROOM was able to navigate changes in demand and position the company for future growth. They also increased their valuation and set the stage for a successful equity round.
Results:
- 5th Line turned to our network of lenders and delivered a tailored financial solution for ROOM
- Despite the challenging times for the industry, ROOM was able to acquire funding and increase valuation.
- 5th Line helped ROOM secure a term loan credit facility that fueled innovation and enabled the company to pivot, leading to a larger equity round
Citcon
Company Background: Citcon is a global all-in-one payment platform with a unified API to integrate 100+ digital wallets. The company offers a full-stack solution from payment processing and gateway services to reporting and fund settlement. Headquartered in Silicon Valley, Citcon provides in-store, online, and mobile payment solutions for the biggest brands worldwide, including Nordstrom, Samsonite, Macy’s, MGM Resorts, Bloomingdale’s, Hyatt, L’Oréal, and more.
Objective: After an equity raise in 2021, high-cost and limited availability constraints set forth by the capital facility hindered Citcon’s opportunities for growth. As such, Citcon aimed to secure a more advantageous capital solution. As a result, the company needed a capital solution that would provide the additional liquidity they needed with flexible terms.
Top Concerns:
5th Line's Solution: Upon working with 5th Line, Citcon successfully secured a customized line of credit, meticulously tailored to align with its specific operational requirements. From structure to covenants, pricing, and overall terms, the deal was strategically designed to meet Citcon’s near-term cash objectives while concurrently addressing long-term liquidity needs. Now, the company is poised to make strategic investments for the expansion of its U.S. customer base throughout 2024.
Results:
Objective: After an equity raise in 2021, high-cost and limited availability constraints set forth by the capital facility hindered Citcon’s opportunities for growth. As such, Citcon aimed to secure a more advantageous capital solution. As a result, the company needed a capital solution that would provide the additional liquidity they needed with flexible terms.
Top Concerns:
- Required flexible, scalable terms to better align with their long-term capital needs.
- Needed to boost liquidity.
- Wanted a secure way to fund the growth of the company.
5th Line's Solution: Upon working with 5th Line, Citcon successfully secured a customized line of credit, meticulously tailored to align with its specific operational requirements. From structure to covenants, pricing, and overall terms, the deal was strategically designed to meet Citcon’s near-term cash objectives while concurrently addressing long-term liquidity needs. Now, the company is poised to make strategic investments for the expansion of its U.S. customer base throughout 2024.
Results:
- Secured a personalized line of credit
- Exceeded their near-term cash goals
- Solved their long-term liquidity needs
Modern Sprout
Company Background: Hand-assembled, hand-packed, and shipped out of the heart of the Midwest, Modern Sprout designs indoor gardening products for easy growing. Their approach solves for the challenges of modern plant care with simple-to-use products and creative adaptations to space, light and seasonal constraints.
Objective: As their current lender was dissolving, Modern Sprout sought a new lender familiar with the consumer goods industry to address their working capital requirements and act as a genuine capital partner. Facing limitations from banks in the current lending market, they engaged 5th Line to manage exploring different lending options.
Top Concerns:
5th Line's Solution: Following a comprehensive review process, 5th Line brought various lending options to Modern Sprout and discussed the pros and cons of each. Ultimately, 5th Line helped Modern Sprout choose the final selection of a new Asset-Based Lending (ABL) facility. The chosen structure—including advance rate, covenants, and other aspects—was customized to align with Modern Sprout's distinctive operating and capital profile, immediately closing the deal.
Results:
— Tony Wesley, Modern Sprout
Objective: As their current lender was dissolving, Modern Sprout sought a new lender familiar with the consumer goods industry to address their working capital requirements and act as a genuine capital partner. Facing limitations from banks in the current lending market, they engaged 5th Line to manage exploring different lending options.
Top Concerns:
- The company’s current lender was dissolving.
- They needed a true capital partner.
- Limitations constrained banks in their lending capacity.
5th Line's Solution: Following a comprehensive review process, 5th Line brought various lending options to Modern Sprout and discussed the pros and cons of each. Ultimately, 5th Line helped Modern Sprout choose the final selection of a new Asset-Based Lending (ABL) facility. The chosen structure—including advance rate, covenants, and other aspects—was customized to align with Modern Sprout's distinctive operating and capital profile, immediately closing the deal.
Results:
- Uncovered and vetted a multitude of lending options.
- Determined a best-fit ABL facility for Modern Sprout.
- Secured a customized lending structure in Modern Sprout’s favor.
— Tony Wesley, Modern Sprout
Anyplace
Company Background: Anyplace provides move-in-ready, furnished accommodations designed for modern professionals. They build their spaces to ensure nomadic workers can do their best work as soon as they arrive. Each apartment is full of all the comforts of home plus a fully equipped workspace, unlike anything in other rentals, co-working spaces, or even office buildings. Anyplace rents apartments for a minimum of 30-day stays in different markets across the U.S. including New York, San Diego, San Francisco, and Los Angeles.
Objective: After receiving substantial Series B funding, Anyplace’s board members required the leadership team to hire a financial counterpart to identify areas of economic improvement. The goal was to pinpoint the root causes of the company's financial challenges, understand the reasons for the substantial cash outflow, and devise strategies for enhancing financial sustainability.
Top Concerns:
Results:
Managing a network of 100+ apartments across four cities, they grappled with escalating monthly rent bills, additional fees, and the need to furnish each unit to uphold their luxury standards. Despite charging a premium for a top-notch work-from-home setup, they found their cash reserves plummeting without a clear understanding of the financial dynamics. While the company had some insights into unit performance, there was uncertainty about the allocation of expenses and how they affected the overall profitability of each unit. Lacking clarity on whether certain costs should be considered essential or categorized as corporate operating expenses, they realized the need to establish a clearer understanding of unit economics.
Thus, after receiving a substantial Series B investment, Anyplace's board members expressed concern over the unsustainable cash burn rate. Advised to grow strategically, they were urged to secure financial expertise through a financial consultant to diagnose the root causes of their financial challenges and chart a path towards sustainable business practices.
5th Line's Solutions: 5th Line was brought into the picture when Satoru Steve Naito, the Co-Founder and CEO of Anyplace, expressed interest in our financial operations and CFO advisory services. Anyplace recognized the need for an interim CFO to meet the board’s request for financial expertise and a quick risk assessment.
To begin, Anyplace and 5th Line collaborated on a comprehensive analysis of unit economics. This involved educating Anyplace’s C-suite and key stakeholders on the importance of such metrics and aligning perspectives with investor expectations. The successful presentation to the board members led to their trust and eventual expansion of 5th Line's role.
Currently, Fifth Line is actively involved in helping Anyplace optimize its portfolio of 100+ apartments, introducing strategic changes to address cash flow concerns, exploring new revenue streams, and contributing to the 2024 budget cycle. The collaboration is not only focused on immediate problem-solving but also on laying the groundwork for sustained
financial health and strategic growth in the coming months.
"5th Line has been doing an outstanding job as our fractional CFO. They are always available on our Slack, delivering financial insights, creating materials, and making recommendations promptly and on schedule. Their communication is transparent and highly professional. The 5th Line team has even participated in leadership meetings, providing valuable financial advice for critical company decisions. They also assist with board meeting materials and participates, aiding in communication with investors. Their services have elevated our company to the next level.”
— Satoru "Steve" Naito, CEO, Anyplace
"We are delighted to express our satisfaction with 5th Line's role as a fractional CFO at Anyplace and the exceptional support provided by the 5th Line team at our board meetings. Their collaborative efforts have significantly improved our financial strategy and visibility, enabling informed decision-making based on insightful financial analyses. The 5th Line team's proactive engagement with all members reflects their dedication and expertise. Additionally, their support for our corporate accounting and provision of asset management has been instrumental. We look forward to continuing his successful collaboration."
— Rafael Ayala Lopez, COO, Anyplace
"Working with the 5th Line team has been a foundational experience for us at Anyplace. Their proficiency in offering quality service and astute financial guidance has played a critical role in our recent successes and strategic improvements. Their commitment to being timely, accurate, and thorough is evident in every interaction. [5th Line]'s ability to simplify complex financial concepts into actionable insights has enabled us to make more strategic and informed decisions. The team's dedication and expertise have not only contributed to our progress towards better financial health, but have also set a new standard for excellence at Anyplace. We are truly grateful for their partnership and look forward to our continued collaboration. The 5th Line team has been instrumental, and we're excited to see where their guidance will take us next."
— Satoru "Steve" Naito, CEO, Anyplace
Objective: After receiving substantial Series B funding, Anyplace’s board members required the leadership team to hire a financial counterpart to identify areas of economic improvement. The goal was to pinpoint the root causes of the company's financial challenges, understand the reasons for the substantial cash outflow, and devise strategies for enhancing financial sustainability.
Top Concerns:
- Required assistance to reduce cash-burning habits.
- Lacked in-house CFO support and associated skill set.
- Needed help to understand Anyplace’s revenues and expenses.
- Desired to improve and optimize their cash flow and gross margin.
- Wanted a financial consultant to help diagnose and rectify financial issues.
Results:
- Enabled Anyplace leadership to understand where they were improperly capitalizing certain expenses.
- Conducted a comprehensive analysis spanning multiple years to assess the performance of all deployed apartments, categorizing the results by market and evaluating the overall success.
- Enhanced credibility and provided substantial guidance on the rationale and approach for managing expenses versus capitalization, subsequently influencing the overall profitability per unit.
- Examined the financial performance on a unit and market basis to identify economic trends over time.
- Provided concrete data and visual representations, adding precision to what was previously a hunch without a clear or comprehensive quantification.
- Identified gaps throughout the team’s operational capacities and skill sets.
- Found and hired a new internal finance and accounting employee.
Managing a network of 100+ apartments across four cities, they grappled with escalating monthly rent bills, additional fees, and the need to furnish each unit to uphold their luxury standards. Despite charging a premium for a top-notch work-from-home setup, they found their cash reserves plummeting without a clear understanding of the financial dynamics. While the company had some insights into unit performance, there was uncertainty about the allocation of expenses and how they affected the overall profitability of each unit. Lacking clarity on whether certain costs should be considered essential or categorized as corporate operating expenses, they realized the need to establish a clearer understanding of unit economics.
Thus, after receiving a substantial Series B investment, Anyplace's board members expressed concern over the unsustainable cash burn rate. Advised to grow strategically, they were urged to secure financial expertise through a financial consultant to diagnose the root causes of their financial challenges and chart a path towards sustainable business practices.
5th Line's Solutions: 5th Line was brought into the picture when Satoru Steve Naito, the Co-Founder and CEO of Anyplace, expressed interest in our financial operations and CFO advisory services. Anyplace recognized the need for an interim CFO to meet the board’s request for financial expertise and a quick risk assessment.
To begin, Anyplace and 5th Line collaborated on a comprehensive analysis of unit economics. This involved educating Anyplace’s C-suite and key stakeholders on the importance of such metrics and aligning perspectives with investor expectations. The successful presentation to the board members led to their trust and eventual expansion of 5th Line's role.
Currently, Fifth Line is actively involved in helping Anyplace optimize its portfolio of 100+ apartments, introducing strategic changes to address cash flow concerns, exploring new revenue streams, and contributing to the 2024 budget cycle. The collaboration is not only focused on immediate problem-solving but also on laying the groundwork for sustained
financial health and strategic growth in the coming months.
"5th Line has been doing an outstanding job as our fractional CFO. They are always available on our Slack, delivering financial insights, creating materials, and making recommendations promptly and on schedule. Their communication is transparent and highly professional. The 5th Line team has even participated in leadership meetings, providing valuable financial advice for critical company decisions. They also assist with board meeting materials and participates, aiding in communication with investors. Their services have elevated our company to the next level.”
— Satoru "Steve" Naito, CEO, Anyplace
"We are delighted to express our satisfaction with 5th Line's role as a fractional CFO at Anyplace and the exceptional support provided by the 5th Line team at our board meetings. Their collaborative efforts have significantly improved our financial strategy and visibility, enabling informed decision-making based on insightful financial analyses. The 5th Line team's proactive engagement with all members reflects their dedication and expertise. Additionally, their support for our corporate accounting and provision of asset management has been instrumental. We look forward to continuing his successful collaboration."
— Rafael Ayala Lopez, COO, Anyplace
"Working with the 5th Line team has been a foundational experience for us at Anyplace. Their proficiency in offering quality service and astute financial guidance has played a critical role in our recent successes and strategic improvements. Their commitment to being timely, accurate, and thorough is evident in every interaction. [5th Line]'s ability to simplify complex financial concepts into actionable insights has enabled us to make more strategic and informed decisions. The team's dedication and expertise have not only contributed to our progress towards better financial health, but have also set a new standard for excellence at Anyplace. We are truly grateful for their partnership and look forward to our continued collaboration. The 5th Line team has been instrumental, and we're excited to see where their guidance will take us next."
— Satoru "Steve" Naito, CEO, Anyplace
Coinme
Company Background: Coinme is an 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.
Objective: Coinme had heavy RD and engineering needs ahead of them as they continued to grow within the digital asset market. Being crypto-focused and with alternative investor backing, 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. Coinme was in the market for growth capital to continue fueling its growth ahead of its future equity round. Given the still lagging market interest from venture debt in crypto companies, Coinme’s options for venture debt were limited compared to other, more ‘traditional’ technology companies.
Top Concerns:
Results:
currency, and process secure transactions.
Objective: Coinme had heavy RD and engineering needs ahead of them as they continued to grow within the digital asset market. Being crypto-focused and with alternative investor backing, 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. Coinme was in the market for growth capital to continue fueling its growth ahead of its future equity round. Given the still lagging market interest from venture debt in crypto companies, Coinme’s options for venture debt were limited compared to other, more ‘traditional’ technology companies.
Top Concerns:
- Needed a funding option that would provide greater capacity and more flexible terms.
- Wanted to explore more favorable venture debt partners.
- Had to find alternative lending options as venture debt solutions in crypto companies were limited.
Results:
- Secured $10MM in credit facility.
- Strengthened Coinme’s financial position in preparation for their next round of funding.
- Acquired funding without an equity co-investment.
Episode Six
Company Background: Episode Six (E6) is a global provider of bank-grade payment technology and ledger management in the cloud. E6 helps banks and brands leave legacy payment technology behind, leapfrog their competition, and build payment products their customers love.
Objective: The company engaged us with a need for capital to strengthen its balance sheet as we headed to uncertain economic times. Traditional commercial bank lenders were not an option for them as they were in the market for the most creative capital solution at the most effective cost.
Top Concerns:
Results:
Objective: The company engaged us with a need for capital to strengthen its balance sheet as we headed to uncertain economic times. Traditional commercial bank lenders were not an option for them as they were in the market for the most creative capital solution at the most effective cost.
Top Concerns:
- Needed to strengthen their balance sheet.
- Commercial bank lenders turned them down.
- Were in pursuit of a creative capital solution.
Results:
- Secured a line of credit
- Acquired funding with low fees
- Strengthened E6’s balance sheet
bio365
Company Background: bio365 is a soil producer specializing in organic, nutrient-enriched, biochar-based soils tailored for controlled environment agriculture. As future generations face dwindling topsoil and climate instability, their innovative solutions optimize plant growth, water efficiency, and soil health while reducing environmental impact.
Objective: bio365 was ready to ramp up production, but lacked the equipment to make it happen. As an angel-backed company in need of funding for new equipment, they had worked previously with some direct equipment financing firms with subpar results. Still looking to increase their output and drive profitability, they then engaged 5th Line as an experienced, reliable firm that could help them find flexible capital partners and negotiate the best terms for a capital expenditure loan.
Top Concerns:
Results:
Objective: bio365 was ready to ramp up production, but lacked the equipment to make it happen. As an angel-backed company in need of funding for new equipment, they had worked previously with some direct equipment financing firms with subpar results. Still looking to increase their output and drive profitability, they then engaged 5th Line as an experienced, reliable firm that could help them find flexible capital partners and negotiate the best terms for a capital expenditure loan.
Top Concerns:
- Needed capital to procure the new equipment required to increase production.
- Wanted to focus on expanding inventory and product sales instead of vetting another direct equipment financing firm.
- Required reputable capital partners for a Capex facility.
Results:
- Secured a Capex Facility with favorable, personalized terms
- Expanded bio365’s production capacity and profitability
- Partnered with a flexible, reputable lender with an understanding of bio365’s unique capital expenditure goals
Brondell
Company Background: Brondell is a leading innovator in health and wellness products, specializing in high-quality, eco-friendly bidet toilet seats, air purifiers, and water filtration systems for residential and commercial markets. In response to increasing consumer awareness about personal hygiene and environmental sustainability, Brondell has continued to expand its product line and reach new customer segments. The company aims to maintain its growth trajectory and continue to innovate in the wellness industry.
Objective: Facing challenges with their existing bank facility and the lending relationship, Brondell needed a new lending partner to better support their financial needs. When the bank adjusted their credit criteria, Brondell reconnected with 5th Line. Their objective was to receive assistance in refinancing their existing debt with a more accommodating and competitive credit solution.
Top Concerns:
Results:
Objective: Facing challenges with their existing bank facility and the lending relationship, Brondell needed a new lending partner to better support their financial needs. When the bank adjusted their credit criteria, Brondell reconnected with 5th Line. Their objective was to receive assistance in refinancing their existing debt with a more accommodating and competitive credit solution.
Top Concerns:
- As its relationship with the bank grew increasingly difficult, Brondell needed a new lending partner.
- The company sought more flexible terms after the bank changed credit criteria.
- Brondell wanted to refinance their existing debt and secure a new credit solution.
Results:
- 5th Line presented multiple viable financing opportunities for Brondell to choose from
- The 5th Line team advised Brondell to help select the financing solution most aligned with their business goals
- Brondell successfully refinanced with a new credit solution to cover its working capital needs
Critical Mention
Company Background: Critical Mention is a 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.
Objective: Being close to two decades old, Critical Mention was 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 was looking for a partner to effectively secure the capital to fund their growth initiatives. Critical Mention needed to refinance high-rate debt, and bring on new cash in order to deploy new product features, improve retention, and scale revenue.
Top Concerns:
Results:
— Mike Berman, COO, Critical Mention
Objective: Being close to two decades old, Critical Mention was 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 was looking for a partner to effectively secure the capital to fund their growth initiatives. Critical Mention needed to refinance high-rate debt, and bring on new cash in order to deploy new product features, improve retention, and scale revenue.
Top Concerns:
- Wanted to improve retention and scale revenue.
- Needed to refinance high-rate debt.
- Required additional cash to deploy new product features.
Results:
- Secured a $5MM line of credit
- Refinanced Critical Mention's high-rate debt
- Reduced cash-burning habits
— Mike Berman, COO, Critical Mention
7 Mindsets
Company Background: 7 Mindsets is a web-based program that empowers educators to guide students through social and emotional learning (SEL) competencies. At the heart of 7 Mindsets’ mission and work is supporting communities and helping students and educators reconnect with their passions. Its highly effective programs improve students’ engagement, behavior, and academic success.
Objective: 7 Mindsets was in a critical phase of its early growth stages. It was burning through a lot of cash and needed more to keep moving forward. Without venture backing or strong cash flow, the team struggled to find a lender that was ready to partner with them during the growth stage. They were seeking a lender who understood the unique position and needs of a growth-stage company and decided to work with 5th Line to uncover new lending options and find a partner who could support their growth.
Top Concerns:
options. We reviewed terms from a range of capital partners to find the most favorable terms for 7 Mindsets, working together to choose a reliable firm and finalize a deal in alignment with 7 Mindsets’ vision and growth strategy. Our lending partner offered a favorable $1.5MM Line of Credit that supported 7 Mindsets’ goals and provided the funding they needed to keep their momentum going. In just 2 years, 7 Mindsets was able to increase its growth 4X and ultimately move toward an acquisition.
Results:
Objective: 7 Mindsets was in a critical phase of its early growth stages. It was burning through a lot of cash and needed more to keep moving forward. Without venture backing or strong cash flow, the team struggled to find a lender that was ready to partner with them during the growth stage. They were seeking a lender who understood the unique position and needs of a growth-stage company and decided to work with 5th Line to uncover new lending options and find a partner who could support their growth.
Top Concerns:
- With a high rate of cash burn, they needed to bring in capital to fuel the next stage of growth.
- They needed a lender with an understanding of growth-stage companies given they lacked the cash flow required for a traditional bank loan.
- As a bootstrapped company without venture backing, they struggled to find a venture debt lender.
options. We reviewed terms from a range of capital partners to find the most favorable terms for 7 Mindsets, working together to choose a reliable firm and finalize a deal in alignment with 7 Mindsets’ vision and growth strategy. Our lending partner offered a favorable $1.5MM Line of Credit that supported 7 Mindsets’ goals and provided the funding they needed to keep their momentum going. In just 2 years, 7 Mindsets was able to increase its growth 4X and ultimately move toward an acquisition.
Results:
- Reviewed our network of lenders and negotiated the best terms to find the ideal growth-stage partner.
- Acquired funding with a high cash burn rate and without venture backing.
- Secured a $1.5MM venture debt facility for a new line of credit, infusing the company with growth capital that enabled them to grow 4X in less than 2 years.
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Client Successes
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.
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