SG Credit Partners provided a $2 million senior secured loan to a cloud-based video storage provider for smart home devices.
The company was searching for a non-dilutive capital solution to help finance continued growth, customer acquisition costs and new data center capex. Bank financing was not an option due to 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.
