Commits $32.6 Million and Funds $30.6 Million to Seven Portfolio Companies and Releases Video on the Value of Venture Debt
CHANDLER, Ariz.–(BUSINESS WIRE)–October 19, 2016–
Leading venture debt provider Trinity Capital Investment (Trinity) today announced results for the third quarter 2016. The company committed $32.6 million of equity and debt capital and funded seven portfolio companies for a total of $30.6 million. Financial results for the third quarter ended September 30, 2016 and reflect Trinity’s unique ability to meet the debt financing needs of portfolio companies across a wide range of industries. Trinity also recently released “The Value of Venture Debt Explained,” a video that communicates the value of venture debt to fast-growing companies and their investors.
Third Quarter 2016 Loan/Lease Highlights:
- $3 million to new portfolio company Everalbum, the No. 1 productivity app in over 75 countries. Everalbum automatically backs up photos and videos so they can be accessed at any time across multiple devices.
“I was thoroughly impressed with Trinity from the very first call. Due to their systematic approach, the entire process was transparent and surprisingly smooth,” said Andrew Dudum, COO of Everalbum. “Trinity has a world-class team of incredibly talented people; they all contributed to make this transaction an unbelievably positive experience.”
- $8 million to new portfolio company Vertical Communications, a leading provider of unified communications and IP telephony solutions for enterprise and SMB customers.
“Trinity took the time to understand our business and tailored a financing package to specifically meet our needs,” said David Krietzberg, CFO of Vertical Communications. “Throughout the process their team was engaged, available, and pleasant to work with at all times.”
- $10 million to new portfolio company Localytics, the mobile engagement platform developed to improve mobile app acquisition, engagement and retention efforts.
- $8.5 million of follow-on investments and $1.1 million of equity investments to existing portfolio companies.
Trinity’s recently released video, “The Value of Venture Debt Explained,” is based on a complex realistic model developed by the company. “The value of venture debt can be misunderstood. We hope this video helps to educate entrepreneurs on the benefit of capitalizing their business with both equity and debt financing,” said David Erhart, partner at Trinity Capital Investment. “As a complement to equity financing, venture debt provides growth capital to extend the cash runway of a startup company in order to achieve the next milestone while minimizing equity dilution for both employees and investors.”
Trinity has funded nearly $100 million of debt capital per year the past few years and expects to nearly double investment activities beginning in 2017. The company recently announced the addition of a third fund, Trinity Capital Fund III, L.P., which is expected to provide an estimated $600 million of additional capital for deployment into high-growth venture capital-backed companies over the next few years.
Trinity provides $2-$15 million of senior and subordinated venture loans as well as equipment lease financing solutions to growing venture capital-backed companies. The company has existing inter-creditor and subordination agreements in place with all of the major technology bank lenders and can quickly provide incremental debt capital to an existing senior debt facility.
About Trinity Capital Investment
High-growth venture capital-backed companies turn to Trinity Capital Investment (Trinity) as a preferred option for venture loans and equipment leases to fuel their growth and extend their runway. Since 2008, Trinity has worked closely with leading venture capital firms and their respective portfolio companies to offer valuable support, enhanced flexibility and competitive venture debt financing solutions to customers with distinctive needs. The Trinity portfolio includes clients in the software, semiconductors and hardware, healthcare and pharmaceuticals, energy and efficiency, consumer and retail, networking and equipment, and clean technology industries. Having funded some of the world’s most innovative startup companies, Trinity is the partner of choice for venture-backed technology startups wanting an experienced partner to help strengthen their financial position while preserving equity. For more information, please visit www.trincapinvestment.com.