Company Description
A high-growth self-storage company that provides convenient pick-up and delivery services to both business to consumer and business to business via a mobile platform.
Request
The company recently raised a significant Series-A and was seeking growth capital to build out additional warehouses to support their continued expansion strategy. To reduce dilution, extend cash runway, and ultimately increase valuations at the next equity round, the management team explored debt capital options.
Recommendation
Management team’s key considerations were access to capital, flexibility on repayment, and a financing partner that had the expertise and capabilities to support the company’s continued growth. In working with the team, we provided a non-revolving term loan to fund the company's capital expenditures in addition to an operating line for day to day operations. To support the business' cash runway, the term loan was structured with a 12-months interest only period followed by regular payments over a 2-year period.
Outcome
The business was able to execute on their growth strategy to expand into two key cities via a lower-cost runway extension. Since the initial financing, the company has reached out to increase the term loan and operating facility as their growth has doubled since funding last year, and they are now ahead of their original expansion timeline.
