Strategy
Working Capital
Our working capital solution provides accretive funding for businesses adapting to the changing direct-to-consumer landscape
Growth Capital
Our growth capital product combines two elements – term loans and payment processing.
All Capital is Not Created Equally
Historically, startup companies were conditioned to pursue venture capital even after they have transitioned from pre-revenue to growth phase of their company’s lifecycle. Although using venture equity to scale a company with an established product generating consistent revenue is unnecessarily expensive, companies still do it because of the lack of accessible debt financing options in the market.
This is where we come in – we help companies grow by providing non-dilutive capital to emerging consumer brands. We fill the gap left by traditional lenders that do not want to take the time to understand a smaller company, get to know the founders, and properly assess the business model.
Debt should generally be used to invest in things that have a high probability of generating additional cash flow for the company.
However, the timeframe to realization can vary substantially depending on the use of proceeds. Therefore, the type and terms of debt should also match the use case. Taking the time to understand the different use cases and capital needs of DTC companies has led us to create two different products – a longer term growth capital product and a short-to-medium term working capital product.
Working Capital
The operational landscape for Direct-to-Consumer companies is continually changing, often requiring these companies to obtain working capital to effectively navigate through these new challenges.
The working capital solutions that DTC companies currently utilize are expensive, short-term, inflexible, and do not adequately address the companies’ real needs. Through our experience speaking with, underwriting, and lending to DTC companies, we have seen the need for a better working capital product and our short-term solution is designed to be a more accretive and useful capital solution.
Implementing a more comprehensive and holistic vetting process allows us to offer better terms to our portfolio companies relative to indiscriminate capital providers that have no human touch, and use underwriting algorithms based solely on sales.
Benefits
What we look for
Direct-to-Consumer and omni-channel retail companies (e-commerce and/or physical locations)
Based in the U.S.
At least 12 months of revenue
Current annualized revenue of at least $1,500,000
Growth Capital
Our growth capital product combines two elements – term loans and payment processing.
As a result of our dual role as both a lender and a payment processor, we allow our portfolio companies to monetize an expense for which they otherwise receive little benefit. By capturing a portion of the margin embedded in the processing fees every company is already paying, we are able to pass through that benefit to our portfolio companies and create the most cost-effective way to offer non-dilutive financing.
Benefits
What we look for:
Direct-to-Consumer and omni-channel retail companies (e-commerce and/or physical locations)
Based in the U.S.
At least 24 months of revenue
Current annualized revenue of at least $3,000,000
Material portion of revenues derived from credit card payments
Projected profitability as you execute on your growth plan
