INDUSTRY USE CASES
PrimeXConnect
PrimeXConnect is an Enterprise B2B SaaS sales platform for red meat. Jointly designed with some of Australia and New Zealands’ largest exporters, PrimeXConnect initially focused on replacing the highly manual sales process with simple, flexible automated workflows for sales teams and their customers. They deliver a Total Cost of Ownership (TCO) that global enterprise software companies cannot match on agility, price and speed of implementation.
Since launching their original product, PrimeXConnect have grown rapidly to meet increasing demand from customers for a turn-key Order Management system that supports the unique manufacturing requirements of the red-meat industry. As they were gaining traction with key customers, funding was running low and a capital raise had to be completed. PrimeXConnect faced a cash flow challenge – at this point, management reached out to Fundsquire for help.
PrimeXConnect was founded by Michael Chandler who serves as the current CEO and Jean-Claude Abouchar, the company’s CTO. Michael has built a business fuelled by his mission to maximise the trading potential and ease of global agribusiness. Across a diverse career, which includes Colonial First State, the DTCC and Bloomberg, there is one thread that ties it all together – a commitment to growing businesses, growing online communities of buyers and sellers while making the process more efficient. Jean-Claude is a veteran of the start-up and technology space whilst also working with Executive teams from market dominant brands such as R.M. Williams, Diageo, Samsung, Fairfax and St George Bank to provide marketing, innovation, and digital transformation services. He has extensive experience in building and designing marketplace technology platforms, 3PL logistics, financial services software, and mobile-first products.
“Traditional funding facilities like bank finance are very onerous, require heavy personal guarantees and a lot of assets, which early-stage companies don’t generally have.“
Why Fundsquire?
FitMyLife was growing at an impressive rate and making use of all available resources on their journey. They had been successful in accessing government grants and R&D tax credits for several years. The problem they saw on the horizon in 2020 was a familiar one – disruption and cash flow uncertainty created by the global pandemic.
FitMyLife was expecting a sizeable tax credit payout, but they also know that with added pressure on the tax authorities, the timing of the payout could be affected.
“Our R&D advisors recommended Fundsquire and a couple of other R&D Financing companies. We actually completed due diligence with Fundsquire and the other providers and did calls with two of their previous customers before making a decision to go with Fundsquire. We had such great feedback from early-stage founders like ourselves about their experience with Fundsquire which is one of the key reasons we decided to go ahead with them. Our trust was in part based on the great experience that the other customers have had.”
The MVP.
PrimeXConnect have accessed various types of funding throughout the development of their product, making use of all available sources, like convertible debt and government grants:
“Initially, seed funding for the business was accessed through a convertible loan, and then that was matched with grants from the government. That’s how we funded the first MVP for the product. We did a second round via a convertible note, and that helped get us to market with the first commercial version of the product, and helped us hire the initial team. That gave us about a year’s runway.”
“Initially, seed funding for the business was accessed through a convertible loan, and then that was matched with grants from the government. That’s how we funded the first MVP for the product. We did a second round via a convertible note, and that helped get us to market with the first commercial version of the product, and helped us hire the initial team. That gave us about a year’s runway.”
“I think in this early stage or startup space, one thing that’s very expensive is time. So when you look at the cost of either losing momentum or having to say no to customers, that has a measurable impact on the value of the business. This inevitably happens if you have no choice but to focus 100% on securing investment.”
Bridging the funding gap.
“We reapplied for financing with Fundsquire. Again we were approved, this time for a larger amount. We only drew down an initial amount to cover us off for a three-month period. We had the great flexibility of being able to go back and within a period of three or four days, draw down additional financing from our application later on.”
A long term partnership.
After their first equity round, PrimeXConnect managed to grow rapidly and expand its user base significantly, so the company needed another cash injection to leverage that early success and scale.
The results.
The most valuable thing that Advance Funding gave the two founders was time, a precious commodity for a fast-growing startup.
“The funding allowed us to continue to grow the business and create value, and increase the value of the business while also working on securing equity funding.”
The final word.
Their trust in Fundsquire wasn’t misplaced. Like other early-stage founders who benefitted from Fundsquire’s simple process and understanding of the startup ecosystem, Michael and JC were happy with the Advance Funding service.