DirecTech Labs

In August 2019, DirecTech Labs Inc., a TechStars graduate and Los Angeles-based company, received a royalty investment from Flow Capital.

DirecTech Labs leverages predictive analytics and machine learning to help direct and social selling companies to understand their sales reps and customers at unprecedented levels. DirecTech’s deep segmentation and behavior profiles – learned from over 16 million sales lifecycles – power personalized text and email interactions with sales reps and customers, maximizing their potential and delivering measurable ROI. DirecTech Labs is currently operating in 85 countries and 24 languages.

“DirecTech lies at the intersection of SaaS, artificial intelligence, and sales tech, three important and recurring themes in our investment portfolio,” said Robb McLarty, CIO of Flow Capital. “We are excited to help DirecTech expand and drive measurable impact to direct selling companies.”

Spiridon Technologies

In July of 2019, Flow Capital closed a royalty investment with Spiridon. Proceeds from Flow Capital’s royalty investment will be used to expand Tantiv4’s product line and customer base, and to fuel Spiridon’s consolidation activities.

Spiridon is a newly-formed Ontario entity and is a private consolidator of IoT and related technology providers. The founders of Spiridon have more than fifty years of experience consolidating technology companies. Recently, Spiridon announced the acquisition of Tantiv4, a Silicon Valley-based company that builds bespoke solutions, including voice enablement, for Consumer Electronics Brands and Industrial Smart Device OEMs. Tantiv4 announced that it had secured an agreement with a leading Japanese Consumer Electronics manufacturer. The agreement will provide Tantiv4 with recurring annual license fees as well as additional service revenues on a recurring basis.

Wirkn

In July of 2019, Wirkn took on a senior secured two-year note from Flow Capital. The investment was matched by an equivalent amount from equity investors and another lender. The growth capital will be used to ramp up tech, marketing, and US sales teams as they aim to successfully grow into the US market.

Wirkn is the largest end-to-end mobile, chat, and video-based job marketplace, focused on connecting Millennials and Generation Z job candidates with shift-based work. The company uses artificial intelligence to better match candidates to jobs and employers to better candidates. Its platform leverages dynamic videos that allow candidates to showcase their personal brand to prospective employers. Targeting youth workers in the retail and hospitality industry, this represents more than 15.4 million employees in North America.

 

Echobox

In July of 2019, Flow Capital invested in Echobox under a venture debt structure over a 24-month term. Flow’s growth capital will go almost exclusively towards growing its sales team from 5 to over 20, with an enhanced focus on less penetrated markets such as the United States and Asia. This deal has allowed Echobox to capitalize their business without the dilution of equity and the restrictions of conventional debt.

Echobox, a London, UK-based company, was founded in 2012 by Antoine Amann, a former software engineer turned journalist who saw an opportunity to address one of the many inefficiencies and issues within the publishing industry. Publishers were struggling with the distribution of their created content onto social media, and there was an opportunity to automate and optimize this task. Echobox has built an artificial intelligence tool that distributes content efficiently and automatically on social media, generating billions of clicks for hundreds of the world’s leading publishers, including The Guardian, Le Monde, and The National Post. The tool is fully available for use on Facebook and Twitter, with Instagram just recently launched. LinkedIn and Pinterest are expected to follow.

Factor75

As experienced operators and private equity investors, Factor75’s founders immediately saw the value in Flow’s revenue-based financing, which involved a fairly-priced and highly flexible structure with zero dilution. In December 2016, Flow led a USD $750,000 syndicated royalty investment, which has been used to significantly grow the size and value of its business by 5X, expanding geographically and into adjacent markets, such as vitamin supplements. In October of 2019, Factor 75 bought out the royalty investment.

“Flow’s revenue-based investment was phenomenal for Factor 75, providing flexible capital that helped enable our company’s very high growth rate. Flow has been a super supportive investor and advisor to our business,” stated Mike Apostal, CEO of Factor 75.

“Factor 75 is a case study of how Flow Capital helps entrepreneurs accrete equity value while minimizing dilution.  We are so pleased to have played a small role in Factor 75’s ongoing success. We congratulate Mike, Nick, and the entire Factor 75 team,” said Robb McLarty, CIO of Flow Capital.

Factor75 is an online, subscription-based, personalized chef delivery service that provides “nutrition for performance.” The company’s name stands for the philosophy that 75% of fitness results and everyday performance derives from diet. The market of customized meal delivery services has taken the world by storm over the last few years as consumers look for nutritious and affordable meals that meet the demands of their busy lifestyles. 

InteriorMark

The business, tightly held by the founders, took on a Flow Capital investment of USD $1,750,000 in 2015 as an addition to their capital stack, as the funds provided them the working capital flexibility to continue to expand without dilution. Since the time of the original investment, operations have grown significantly with an additional USD $150,000 was advanced in 2016 and subsequently bought out in 2017.

InteriorMark, formed in 2007, is an online retailer of home theater furniture and seating, selling both through its own online presence as well as through various large retail channels such as Best Buy. Since its inception, InteriorMark’s home theater business has been flourishing, becoming a leading supplier in the US.

 

TruGolf

Flow Capital’s USD $1,000,000 royalty investment enabled TruGolf to expand both its product portfolio, with E6 CONNECT, and the geographies in which it sells — all without diluting its existing shareholders.

TruGolf began as a subsidiary of Access Software. In 1999, Access Software was purchased by Microsoft for its expertise in golf software development. Following the acquisition, TruGolf maintained the core programming and graphics team of Links™, the best selling PC golf franchise ever.

The TruGolf team is passionate about driving the golf industry with the most realistic simulation engine possible. It has built award-winning video games (Links™), innovative hardware solutions (TruFlight), and now an all-new eSports platform to connect golfers around the world with E6 CONNECT.

 

ConnectAndSell

In May 2017, Flow Capital invested USD $1,500,000 in ConnectAndSell.  Our value proposition rang true: flexible and expandable growth capital that would help catalyze the next level of company expansion, without diluting the existing cap table. Like Boardwalktech and many of Flow Capital’s portfolio companies — and in spite of being situated in the heart of Silicon Valley —ConnectAndSell had no interest in taking venture capital, preferring to maintain operational control, without the high-pressure growth expectations of VCs.

Since 2007, ConnectAndSell’s patented cloud sales acceleration platform has helped over 1000 B2B companies ranging from small startups to Fortune 500 enterprises like IBM, Infoblox, Varonis to make 65 million dials and deliver 3.5 million sales conversations. ConnectAndSell integrates with popular CRMs like Salesforce, Microsoft Dynamics, SugarCRM, Netsuite, and many others.

Bluedrop Performance Learning

Prior to the Flow Capital investment, Bluedrop had raised CAD $3,000,000 with Difference Capital in order to complete the acquisition of Atlantis Systems Corp. Following the acquisition, Bluedrop was in need of working capital for the integration and growth of the newly joined businesses. Flow Capital’s funding was easily combined with BPLI’s existing sources of capital and offered the company a solution that helped propel the company on a successful growth path as a merged entity while avoiding shareholder dilution at the wrong time.

Bluedrop Performance Learning (TSXV: BPLI) is the holding company for its two wholly-owned operating divisions, Bluedrop Training and Simulation Inc. and Bluedrop Learning Networks Inc. BPLI’s mandate is to lead and dominate niche markets where technology and learning can deliver new levels of operational success to military, government and corporate customers.

 

Inner Spirit

Flow Capital initially invested in ISH’s subsidiary company, WatchIT!, and subsequently converted its revenue royalty into a significant equity interest in Inner Spirit.

Dedicated to creating cultural hubs in every community in which it operates, Inner Spirit is establishing a chain of recreational cannabis dispensaries under its Spiritleaf brand. Supporting local entrepreneurs by applying its award-winning franchise and retail models, Inner Spirit has more than 100 partnerships in place for Spiritleaf locations across BC, Alberta, and Saskatchewan. Inner Spirit will also operate multiple corporate dispensaries. With a diverse portfolio of quality and curated lifestyle cannabis products – including Spiritleaf’s own locally and sustainably sourced lines – Inner Spirit’s Spiritleaf is positioned to be an iconic Canadian brand and the most trusted source for recreational cannabis.

Fixt Wireless Repair

In 2017, Flow Capital provided CAD $250,000 in revenue-based capital alongside other investors, allowing the company to continue its retail and corporation expansion plan. In 2018, Fixt had more than doubled its retail presence and bought out Flow’s investment.  

Fixt Wireless Repair finds itself at the forefront of a multi-billion dollar market that is relevant to 90% of the North American population, is highly fragmented, and is primed for an industry leader to emerge. This Toronto-based B2B and B2C cellphone electronics repair chain is set up by a team of wireless industry veterans who wanted to use a Flow investment as a catalyst to unlocking $1.25M of additional equity from existing investors. Flow Capital would also support continued growth and expansion that would either postpone a dilutive equity raise until the valuation was much higher or lead to the sale of the business. 

Boardwalktech

After investing in Boardwalktech in December 2017, Flow Capital played a pivotal role in the company’s CAD $10,000,000 go-public transaction on the TSX Venture exchange.

Flow Capital’s investment and advice catalyzed this transaction, enabling Boardwalktech to realize significant value for its existing shareholders and to fuel the next level of its growth, backed by world-class investor Fidelity.

Boardwalktech (TSXV: BWLK) provides a patented digital ledger blockchain service for the extended enterprise, which its customers — including 23 of the Fortune 500 — use to run mission-critical applications managing the digital exchange of information internally and with customers, channels, and suppliers. One of the most highly anticipated consumer products of 2017 was launched using the Boardwalktech digital ledger to manage its global supply chain.

Aquam

Aquam is an integrated pipe infrastructure solutions company that provides proven technology solutions to owners and operators of both water and natural gas pipe infrastructures. Flow Capital’s 2014 investment of CAD $2,000,000 enabled Aquam to significantly grow its business prior to raising its next round of equity.  In 2017, Aquam raised $26,000,000 from NewWorld Capital, realizing significant accretion for Aquam’s shareholders and a buyout of Flow’s royalty.

Above Security

In 2014, Above Security was looking for a flexible capital option that would allow them to expand their presence across North America and the EU while avoiding shareholder dilution. Flow Capital’s original investment of CAD $1M and various subsequent rounds allowed Above Security to successfully execute on their goal and complete an acquisition. In the end, Flow Capital’s investment allowed the executive team to maintain control of their cap table and was ultimately pivotal in the successful exit of the business to Hitachi in 2015.  

Above Security, now Hitachi Systems Security, is a Montreal-based provider of customized services for monitoring and protecting IT assets for small to medium-sized businesses in highly-regulated industries. Founded in 1999, the company now has offices in North America, Europe, and the Middle East with accounts in over 40 countries worldwide.