Toronto — September 10, 2019 —Espresso Capital announced today that it has provided Toronto-based AdvisorStream, an automated marketing platform that drives client engagement and captures new business for financial advisors and other sales professionals, with a new C$2 million credit facility. The company will use the funds to finance its sales and marketing initiatives and fuel its expansion into the US and European market.
“We needed to be able to fund the growth that we’re realizing right now,” says AdvisorStream CEO, Kevin Mulhern. “We wanted to be able to jump on opportunities as they happen without having to worry about draining our cash flow. The credit facility from Espresso not only met that need, it also allowed us to avoid dilution.”
Since its inception six years ago, AdvisorStream has raised approximately $4.5 million through angel and seed investors. The credit facility from Espresso marks the first time the company is using venture debt. The funds will allow AdvisorStream to continue to focus on driving growth and increasing its valuation as it decides if there is a need for a potential equity raise, while also giving the flexibility to potentially push that raise out indefinitely.
“We opted for venture debt so that we could execute on current growth opportunities without having to wait until we’re fully funded,” says Mulhern. “Key components of that strategy include enhancing our sales and marketing operations and expanding into the UK and European markets. Ultimately, we see venture debt as a way to grow our valuation considerably before pursuing a potential equity round at some point in the future.”
AdvisorStream has received a number of inbound inquiries from venture capital firms across the US and that are looking to invest in the fast-growing automated digital marketing space, but Mulhern says he’s going to take his time before making any decisions about raising capital.
“We’ve been really impressed with the team at AdvisorStream. The company is achieving real traction, particularly in the wealth management space,” says Mark Gilbert, a Director at Espresso Capital. “It appears that there are other large, adjacent markets that are readily addressable by AdvisorStream as well. We’re confident that Kevin and his team will achieve their goal of reaching $10 million in annual recurring revenue in the next 18 months.”
To learn more about how AdvisorStream raised its $2 million credit facility, read the case study.
About Espresso Capital
Espresso empowers companies with innovative venture debt solutions. Since 2009, we’ve helped more than 270 technology companies and their investors accelerate growth, extend runway, and increase strategic flexibility with non-dilutive capital. Learn more at www.espressocapital.com.
AdvisorStream is an industry-leading automated marketing platform that drives client engagement and builds business. For more information, please visit www.advisorstream.com
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