We’re more than halfway into 2020 and it’s safe to say this has been the strangest year yet.
From dealing with a global pandemic, murder hornets, and Kanye West announcing his US Presidential Candidacy, the only question left is… How are your New Year’s Resolutions coming along?
Back in 2016, our New Year’s Resolution was to eat healthier, so we invested growth capital into Factor 75. The company is an online, subscription-based meal delivery service that ships organic, non-GMO meals to homes and businesses throughout the United States (perfect for social distancing). With an emphasis on “nutrition for performance,” the company’s name stands for the philosophy that 75% of fitness results and everyday performance derive from diet.
After receiving revenue-based financing from Flow Capital back in 2016, Factor 75 was able to grow the size and value of its business significantly, expanding geographically and into adjacent markets. They now offer nutritional supplements and consulting for their fitness-focused customers.
"Flow's revenue-based financing was phenomenal for Factor 75, providing flexible capital that helped enable our company's very high growth rate. Flow has been super supportive investors and advisors to our business."
Mike Apostal
CEO of Factor 75
For four consecutive years, Factor 75 ranked in the Top 500 on the Inc. 5000 list, the most prestigious ranking of the nation’s fastest-growing private companies. Within that time frame, their revenue growth came out to 1,018%.
Factor 75 was able to grow its business with revenue-based financing because of its flexible structure and terms. The company was able to access the growth capital it needed to invest in product development and marketing while minimizing equity dilution and maintaining full control of their company.
Towards the end of 2019, three years after receiving revenue-based financing from Flow Capital, Factor 75 decided it was the right time to buy out the investment and was able to end the contract on their terms. This “no fixed term” feature that is unique to Flow Capital gave Factor 75 additional flexibility when it came to the royalty buyout.
In November 2020, the company announced it had been acquired by meal-kit delivery giant, HelloFresh, for a total purchase price up to USD $277 million.
Our team was delighted to play a part in Factor 75’s success and we continue to support companies across various industries with similar growth projections.
With 2021 just around the corner, it’s time to start thinking about your company’s New Year’s Resolutions.
