Strategy
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 borrower use cases and capital needs of DTC companies has led us to offer a flexible product that serves a variety of growth needs.
Our partners work with us for shorter-term working capital to purchase inventory ahead of busy season, growth capital for product / category expansion and critical hires, expansion with a wholesale partner, owned retail expansion, and more.
Many partners work with us for multiple use cases over time - as we offer pre-committed tranches, refinancing and amendments to deliver additional capital as their business continues to grow.
Benefits
What we look for:
Direct-to-Consumer, and omni-channel companies (could be physical / e-commerce retail and / or wholesale)
Based in the U.S.
At least 24 months of revenue
Current annualized revenue of at least $3,000,000
Projected profitability as you execute on your growth plan
