Technology

The Company: Sponsor-backed, cloud-based software platform primarily marketed to outbound sales organizations.

The Financing Situation: The Company raised over $3MM in a Series A equity round and experienced significant growth over the prior three years. The Company needed growth capital to execute on its sales pipeline, but did not want to raise additional equity before its Series B round due to dilution concerns at the current valuation. The Company wanted to grow revenue as much as possible in order to increase its valuation prior to raising additional equity.

The Solution: Super G provided a non-dilutive senior secured term loan. This structure enabled the Company to continue its growth trajectory and increase its valuation before raising additional equity. Super G was able to quickly get comfortable given the rapid growth, contracted recurring revenue and strong management team. The amount of time from signed term sheet to closing was less than two weeks.

Super G’s non-dilutive growth capital loans help technology companies extend runway and reach milestones which increase valuation while protecting equity.

The Company:
Venture-backed SaaS provider for content management and digital publishing.
Revenue: $8mm | Equity Raised: $22mm

The Financing Situation:
The Company was placed in the Bank’s special assets division due to a covenant violation. Although the Company continued to perform, the Bank wanted to exit the credit. Super G was brought in to offboard the client and provide additional working capital.

The Solution:
Super G was able to quickly get comfortable with the business due to the contracted recurring revenue and equity support. Super G provided a $1.5mm highly structured, nonformula-based, senior secured loan. The Bank successfully offboarded the client as desired and the Company received additional working capital.

The Company:

Software as a service platform that provides data management solutions to insurance agencies, government agencies, hospitals and other healthcare organizations. The Company’s service offering includes enrollment and network management, medical credential verification, continuous monitoring of provider data, and claims screening.

The Financing Solution:

The Company was in the process of raising a large strategic equity round and was seeking interim (“bridge”) capital to support its continued growth as well as general working capital cushion to alleviate equity closing pressure.  The Company had an existing senior term loan with an affiliate of funds managed by Fortress Investment Group (“Fortress”) secured by the Company’s intellectual property and all other business assets so traditional working capital solutions such as asset based lending/factoring were not an option due to seniority issues as well as insufficient borrowing base availability.  Additionally, given the anticipated time horizon to a large equity raise, the Company preferred non-dilutive capital versus convertible note/shareholder equity options.

The Solution:

Super G was able to work closely with Fortress to provide a $1.5 million structured working capital solution by carving out specific contracts as collateral and lending against the annual value of those contracts (i.e. Super G was senior secured on specific contracts and second lien on all other assets). This allowed the Company to have much more access to cash immediately then they could with a traditional asset based lender. This unique structure combined with non-dilutive capital were the key points of difference when the Company made its bridge financing decision. In addition to the contract collateral, the key underwriting criteria for this deal was the Company’s unique software offering, the management team, customer stickiness, and ability to service Super G’s debt through operational cash flow in the event an equity raise does not occur.

For more information on Fortress Investment Group, please contact:

Yoni Shtein
Vice President
yshtein@fortress.com
415-284-7415
www.fortress.com

 

Super G Provides $1,250,000 Seasonal Working Capital Loan to Education Software Provider

The Company:

Delivered in a SaaS model, the Company provides core educational programs (primarily math & science) for middle and high school students.

The Financing Situation:

The Company is a seasonal business from a selling and cash collection perspective as the Company’s customers (school districts) have specific buying patterns and the Company collects lump-sum annual payments. The Company’s senior lender, Bridge Bank, provides an asset based facility and thus there is a limited availability during the low season (i.e. limited AR to leverage) for working capital cushion. The Company historically solved seasonal working capital shortfalls with venture capital/convertible notes and was seeking non-dilutive capital as an alternative.

The Solution:

Super G was able to quickly get comfortable with the Company’s SaaS model, seasonality, growth plans, and management team to close a $1,250,000 loan that solved the Company’s seasonal working capital need. Super G’s amortization schedule was structured around the Company’s seasonal cash flow – light amortization in low cash collection periods and increased amortization during the busy season. Super G worked closely with the Company’s existing lender, Bridge Bank, to finalize an intercreditor agreement and fund the Company within 3 weeks.

For more information on Bridge Bank, please contact:

Chris Hill

SVP Regional Director

Capital Finance

christopher.hill@bridgebank.com 

408-556-8635 p

408-660-5355 m

 

Intrepid is pleased to announce the completion of a growth capital raise for its client, Solid Commerce, a leading player in the Software-as-a-Service (SaaS) eCommerce space. With the support of its new partners, Silicon Valley-based Montage Capital and Silicon Beach-based SaaS Funding, both of whom are minimally dilutive providers of growth capital to technology businesses, Solid Commerce will accelerate the implementation of its growth initiatives, including sales and marketing, improved UI/UX, and continued marketplace expansion. Intrepid acted as the exclusive financial advisor to Solid Commerce.

“We are very proud of the platform that we have built. Recently, we have enhanced the user interface and introduced several new features that provide our customers with unprecedented access to the burgeoning online marketplace environment, which in turn, has attracted tremendous demand from end users and large industry partners,” said Eran Pick, CEO of Solid Commerce. “This growth investment will allow the company to continue aggressively expanding and further solidify its position as the market leader in retail eCommerce software.”

The success of the Solid Commerce platform is based on the company’s unique ability to seamlessly integrate with businesses of all shapes and sizes—from SMB, to mid-market to enterprise, across any end market. “Eran and his team have done a truly remarkable job in creating a transformational software platform catering to the large and ever-growing global retail eCommerce marketplace,” said Tristan Snyder, Co-Head of Intrepid’s Software & Services practice. “Eran engaged us to run a highly competitive, tailor-made process focused on value-added software and technology growth investors. We are privileged to have had this opportunity to help Eran and couldn’t be more excited about the future of the company.”

Headquartered in Marina Del Rey, Calif., Solid Commerce is the preeminent provider of retail eCommerce solutions that bind everything that is required to create a single seller experience for retailers online. Solid Commerce has won numerous industry accolades, including earning a position on the Inc. 500 in 2014 and being named a Top 10 Retail eCommerce Solutions Provider in 2015 by CIO Outlook.

Link to Press Release:

http://www.businesswire.com/news/home/20160804005292/en/Intrepid-Advises-Preeminent-Cloud-Based-Retail-eCommerce-Software

About Intrepid Investment Bankers

Intrepid provides M&A, capital raising and strategic advisory services to entrepreneurs and middle-market companies in various industry sectors. Our heritage, rooted in our founders’ successful 35-year history, breeds a culture that embraces teamwork, tenacity and creativity to win big for our clients. We believe that every company has an entrepreneurial passion that drives it and a story that defines it. Our team delivers results through skillful positioning of the client’s story and relentless execution. Based in Los Angeles, Intrepid augments its international capabilities through active membership in M&A International, an exclusive global alliance of M&A advisory firms.

The Company:
A leading provider of IT consulting and cloud collaboration solutions to the government, Fortune 500 companies, and medium size businesses.

The Financing Situation:
The Company engaged an investment bank to raise institutional mezzanine capital to finance its next phase of growth. During this process the Company had a short-term working capital need to fulfill a backlog of new service contracts and to stay current with existing vendors. The Company needed incremental capital beyond its borrowing base since new service contracts require upfront capex before the Company can start invoicing and generating accounts receivable.

The Solution:
Super G underwrote and closed a 2nd lien term loan within weeks to meet the Company’s timing needs. Super G provided a structured solution with a custom repayment schedule in partnership with the Company’s senior ABL lender, CapitalSource.  CapitalSource was a value added partner in terms of their service and speed, working with all parties to ensure timely execution and a successful closing.

For more information on Capital Source, please contact:
Patrick Brennan
Senior Vice President | Southern California
pbrennan@capitalsource.com

Gretchen Wile
Senior Vice President | Northern California and Pacific Northwest
gwile@capitalsource.com

About Us:
Super G Funding is an alternative lender with over $100MM in committed capital specializing in residual and cash flow loans.  Our mission is to fill the credit void in the lower middle market by providing non-dilutive, senior and subordinated debt solutions to businesses in need of financing for working capital, growth capital, acquisition capital, or special situation financing.  We lend up to $5MM per transaction in the form of a fully-amortizing cash flow term loan with a 6-36 month term (pricing contingent on credit profile).  We are a small, but nimble team and highly responsive. We have over 100+ borrowers around the country and are able to give quick responses and close deals rapidly.

The Company: A fully-integrated digital media content company.

The Financing Situation:  The Company was in the process of raising venture capital to fund strategic acquisitions and other long-term growth initiatives.  During this process, the Company needed additional working capital to fund operations in order to maintain its growth trajectory.

The Solution:  Super G was able to quickly get comfortable with the Company’s value proposition, experienced management team, and institutional backer.  Most importantly, the Company demonstrated the ability to sufficiently debt service Super G’s amortizing term loan assuming the venture debt and Series B round did not close.  Super G structured a flexible 2nd lien solution subordinated to the Company’s senior lender, FastPay, a financial platform that provides credit and payment solutions to the global digital media industry.  Super G’s covenant light loan documents and rapid decision making allowed for an efficient and seamless closing.   Post-funding, the Company was able to successfully close its venture debt round.

For more information on FastPay, please contact:

Maytal Shainberg
Sr. Director, Engagement
maytal@gofastpay.com
www.gofastpay.com

About Us:
Super G Funding is an alternative lender with over $100MM in committed capital specializing in residual and cash flow loans.  Our mission is to fill the credit void in the lower middle market by providing non-dilutive, senior and subordinated debt solutions to businesses in need of financing for working capital, growth capital, acquisition capital, or special situation financing.  We lend up to $5MM per transaction in the form of a fully-amortizing cash flow term loan with a 6-36 month term (pricing contingent on credit profile).  We are a small, but nimble team and highly responsive. We have over 100+ borrowers around the country and are able to give quick responses and close deals rapidly.

 

The Acquirer:

Simply Color Lab, one of the nation’s top professional photography printers.

The Target:

ShootQ, a SaaS company that provides a complete studio management system made especially for photographers. ShootQ’s virtual management software assists its professional photography users in all facets of the sales process from tracking prospective clients, contract and payment management, to client product delivery, and much more.

The Financing Situation:

Simply Color Lab could not obtain enough availability from its senior lender to purchase ShootQ and fund growth.  Simply Color Lab needed a lender that would underwrite the monthly recurring revenue and cash flow of ShootQ rather than focusing on its assets, or lack thereof.  As with all acquisition deals, a quick close was required as well.

The Solution:

Super G was able to get comfortable with ShootQ’s subscriber statistics and monthly recurring revenue to finance a majority of the purchase price with the remainder coming from Simply Color Lab as equity.  Super G structured a non-dilutive 24 month solution for the acquisition that should be highly accretive as it allows Simply Color Lab to further expand its product and service capabilities to provide its customers with a quality management program that will create more efficient business practices and significant cross-selling opportunities.

SaaS Funding Initiative:

Super G Funding recently closed several Software-as-a-Service (SaaS) deals and continues to dedicate more resources to emerging SaaS companies. Super G’s capital is non-dilutive and based on Monthly Recurring Revenue (MRR) rather than profit in order to better enable companies to achieve scale and increase shareholder value. Super G’s SaaS lending product has successfully enabled companies to extend their runway and maximize valuations when pursuing venture capital.

The Company:

ClickNotices, Inc. is the leading Software-as-a-Service (SaaS) provider of court filing and delinquency management services to the multifamily industry. The Company’s cloud-hosted platform and expert court agents offload the administrative burden of managing late rent.  Every month, ClickNotices handles thousands of late rent cases, helping property managers minimize delinquencies, reduce legal costs, and simplify operations.

The Financing Situation:

ClickNotices was bootstrapped, growing quickly and recently turned profitable.  Its founders wanted to invest more aggressively in growth while minimizing dilution.  The Company wanted a financing partner that would provide capital based on a multiple of its recurring revenue and was capable of supporting its growth and possible acquisition strategy.

The Solution:

As a pioneer and market leader in residual loans, Super G was able to quickly understand and underwrite ClickNotices’ revenue stream.  Super G was able to structure non-dilutive growth capital based on a multiple of monthly recurring revenue and close within weeks.

The Acquirer:

Independent sponsor seeking 2nd lien capital for acquisition financing.

The Target:

Franchisor of after-school enrichment programs (math, reading, writing, and more) for kids ages 5 – 12.

The Financing Situation:

There was a shortfall between the Target’s purchase price and the equity + senior debt raised by the Acquirer.

The Solution:

Super G was able to quickly get comfortable with the Acquirer’s background, recurring revenue business model, growth plans, and the existing cash flow of the business to finance the gap in the acquisition. Super G structured a non-dilutive solution that was subordinated to the Acquirer’s regional bank. The financing allowed for a successful closing within a few weeks of being approached by the Acquirer.

About Us:

Super G Funding is an alternative lender with over $100MM in committed capital specializing in residual and cash flow loans.  Our mission is to fill the credit void in the lower middle market by providing non-dilutive, senior and subordinated debt solutions to businesses in need of financing for working capital, growth capital, acquisition capital, or special situation financing.  We lend up to $5MM per transaction in the form of a fully-amortizing cash flow term loan with a 6-36 month term (pricing contingent on credit profile).  We are a small, but nimble team and highly responsive. We have over 100+ borrowers around the country and are able to give quick responses and close deals rapidly.