– Marcus Östman, Investment Manager Gilion
This business is characterised by few customers, long sale cycles and long contracts. Their customers are slow moving and quite traditional institutions and customer acquisition is mainly sales driven. Their strengths lie in product stickiness, showcasing close to 100% retention, reflecting years of product-market fit iteration.
Founded in 2016, the founders decided to raise €10m in equity in 2017 and have since been more or less cashflow neutral.
Capital use case
This business had modest, but stable growth. In 2022 they were out of liquidity with the option of turning profitable but wanted to invest in global expansion. External capital was needed to invest in sales and customer success.
In this case equity funding would have been more expensive than the interest rates of a loan. But since they were not cash flow positive, a bank loan was out of the question. The founders wanted to opt for a fully non-dilutive option, without warrants or convertibles featured in venture debt credits. Hence an Gilion Growth Loan was the perfect fit.
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