SGCP Provides $2.0 Million to Cloud Storage Provider
Non-VC/sponsor backed cloud-based video storage provider for smart home devices.
Revenue: $10mm+ run rate | EBITDA: Break-even
The Financing Situation:
The Company was searching for a non-dilutive capital solution to help finance continued growth – customer acquisition costs and new data center facility capex. Bank financing was not an option given a combination of the Company’s non-institutional ownership and current financial performance. ABL financing was not an option given the Company’s direct-to-consumer model.
SGCP was able to get comfortable with the Company’s lack of historical profitability given the growing monthly recurring revenue, data center assets, and dedicated entrepreneur. SGCP provided a non-dilutive $2.0 million senior secured loan that will enable the Company to continue rapid growth while preserving existing shareholder equity.