Participated · Debt Financing · Apr 2015

CAN Capital is a New York City alternative small-business finance company that uses its own real-time platform and risk-scoring models built on an expansive data file to assess and facilitate capital provision. In May 2015 the company secured a $650 million credit facility to expand and accelerate growth of its small-business finance programs. Led by CEO Daniel DeMeo, CAN will deploy the debt facility to scale its lending and funding operations. Since its founding in 1998, the firm has provided access to almost $5 billion in capital across more than 150,000 distinct small-business finance transactions spanning over 540 industries. Prior financing activity includes a $33 million round in 2014 co-led by Meritech Capital Partners and Accel Partners. CAN Capital offers unsecured working capital to small and medium-sized businesses using a real-time platform and proprietary risk-scoring and underwriting algorithms that ingest merchant, demographic, firmographic, psychographic and behavioral data. It deploys capital in amounts typically ranging from $2,500 to $250,000 and supports automated repayment options tied to merchants’ payment processors. CAN has provided about $3.6 billion in capital across roughly 123,000 distinct small-business finance transactions and serves customers from medical practices to retail and online merchants. The company reports a 75% customer renewal rate and has doubled revenue over the past four years, and is on pace to double again in the next two years; Accel’s board member said the company is profitable. CAN operates in the U.S. and Latin America and emphasizes merchant-friendly repayment structures and nontraditional data sources (e.g., sales frequency, inventory access, eBay ratings, tax returns) in underwriting. Management and investors view the business as rapidly growing with potential IPO upside amid a competitive but large market that includes Kabbage, OnDeck, Lending Club and Prosper.

Led · Debt Financing · May 2014

Evolve IP provides unified cloud services through its Evolve IP OneCloud™ platform, offering virtual data centers/servers, virtual desktops, unified communications, disaster recovery, contact centers, and related services. The company says more than 50,000 users in the US and globally depend daily on its platform. Evolve IP markets its combination of security, stability, scalability, and lower total cost of ownership as superior to legacy systems and other cloud offerings. Management is described as a team of experienced technology executives who have worked together for over 20 years. The company is positioned for future growth and aims to fund acquisitions and general corporate purposes. Evolve IP is headquartered in Wayne, Pa. Evolve IP provides a suite of managed services including Managed Telephony, Hosted Applications, Managed Networks, and Security & Compliance. The company’s platform is designed to help businesses unify and simplify the technologies employees use to communicate, enabling customers to replace multiple vendors with a single provider. Evolve IP positions its services to reduce the operational and energy costs associated with on-premise solutions. The company says it will use new capital to further scale operations in response to strong customer and market demand. Its customer base spans businesses in 27 states and six countries across industries such as Legal, Banking, Travel, Commercial Real Estate, Healthcare, Retail, Government and Professional Services. Evolve IP offers an integrated, single-vendor suite of business communications including hosted applications and telephony, positioning itself as an alternative to a patchwork of vendors. The company was formed and burst onto the scene in 2007, when it raised $15.4 million in financing from private entities. Evolve employs over 50 people and serves roughly 200 businesses comprising more than 9,000 users. It operates two active/active data centers—one at 401 North Broad Street and another at its Wayne headquarters—with 24/7 support and automatic failover between sites. The company reports steady growth within a roughly 60-mile radius of Wayne and plans to open sales offices up and down the East Coast. Leadership says it will expand regionally without outsourcing core services to preserve its integrated model.

Participated · Debt Financing · May 2011

Datapipe is a Jersey City, NJ-based provider of enterprise-ready, mission-critical IT services. The company offers services and solutions for managing and securing mission-critical IT environments, including cloud computing, infrastructure as a service (IaaS), platform as a service (PaaS), colocation and data centers. It delivers services from New York, San Jose, CA, London, Hong Kong and Shanghai. Datapipe secured $176M in equity and debt financing, improving its financial position to support growth. CEO Robb Allen said the financing allows the company to continue to grow and expand its services and solutions. The raise supports Datapipe’s stated plans to expand its mission-critical IT service offerings. DataPipe provides data hosting and managed IT services for mid-size to large companies. It operates six data centers and serves more than 1,500 customers. The company secured $75 million in combined credit and equity financing led by Goldman Sachs. DH Capital served as financial adviser on the transaction. Proceeds will support expansion of its Somerset, N.J. campus to as much as 60,000 square feet of data center space and growth opportunities in London and China. Robb Allen is the company's chief executive and the company is based in Jersey City, N.J.