Surgical MedTech Company

A company in the MedTech industry with $12 million in revenue and negative EBITDA approached Attract Capital to help them secure venture debt financing to support their growth in Europe and the US.  The Company was owned the founders had just raised a successful equity round at a $44 million equity value from family offices. They had tried to raise venture debt financing on their own but received only one proposal for $2 million, due to the lack of a venture capital firm as an investor.  The Company had an aggressive growth plan and needed capital.  We created a debt structure that was more aggressive than the prior one used by the Company.  We created a new presentation and expanded the outreach to cover twenty-five new venture debt lenders.   We created a structure that would allow the company to flexibly borrow more financing as their growth dictated. 

In the first part of this engagement, we raised a $12 million facility from a UK-based lender consisting of $8 million at closing and two additional $2 million tranches for future drawdown.   This accelerated the company’s transformation from a system integrator to a software company. We also were the lead advisor to the company on $8 million of interim fundraising as part of the Company’s series B round. The Company successfully closed its Series B equity at a $150 million equity value the following year.

The total loan facility at closing of $12 million was six times what the company had previously received in its fundraising process.   This capital enabled them to invest more in the business, and they successfully increased their equity value from $44 million to $150 million within a 2-year period. 

Due to the Company’s continued need for capital and this lender’s inability to increase the size of its loan, we advised the client to replace them with a new lender who could provide a larger facility.

In the second part of this engagement, Attract Capital raised a $24 million facility from a Swiss-based lender to refinance and provide capital for acquisitions.  We were very involved in building the relationship with the lender and led the business diligence and transactional support on behalf of the company. The client invested a portion of the funding into tech innovation which expanded their product line and accelerated their time to market.  Even as the Company continued to invest in the business and incur higher losses, we were able to double the size of venture debt from $12 million to $24 million.  At the same time, the Company was successful at increasing their equity value from $150 million to $400 million.

Over this 4.5-year period, the client increased its venture debt loan from $2 million to $24 million, a twelve times increase. The Company’s equity value increased from $44 million to $400 million over the same period, nine times increase and a ROI of 163% per annum.

In the third part of this engagement, the current lender was no longer interested in staying in the deal.  We advised the Company to replace this lender with a new lender who was able to provide a larger $30 million facility.   This occurred in 2024 and resulted in the Company taking out the current lender and bringing in new equity at the same time. 

In total, Attract Capital has raised $88 million in financing for this company over a 6– year period.