Case Studies

Above Security, now Hitachi Systems Security, is a Montreal-based provider of customized services for monitoring…

Above Security, now Hitachi Systems Security, is a Montreal-based provider of customized services for monitoring and protecting IT assets, catering to small and medium businesses in highly-regulated industries such as financial services and government. With accounts in over 40 countries worldwide the company was founded in 1999 and has representative offices in North America, Europe, and the Middle East as well as security operations in Montreal and Sierre, Switzerland.

In 2014, Above Security had been looking for flexible capital that would allow them to expand their presence across North America and the EU. Flow Capital’s original investment of CAD $1,000,000 and various subsequent rounds allowed them to successfully execute on their growth plan and complete an acquisition.

Flow Capital’s investment allowed the executive team to maintain control of their cap table and was ultimately pivotal in the successful exit of the business to Hitachi in 2015.

Bluedrop Performance Learning (TSXV: BPLI) is the holding company for its two wholly owned operating divisions,…

Bluedrop Performance Learning (TSXV: BPLI) is the holding company for its two wholly owned operating divisions, Bluedrop Training and Simulation Inc. and Bluedrop Learning Networks Inc. BPLI’s mandate is to lead and dominate niche markets where technology and learning can deliver new levels of operational success to military, government and corporate customers.

Prior to the Flow Capital investment, Bluedrop had raised CAD $3,000,000 with Difference Capital in order to complete the acquisition of Atlantis Systems Corp. Following the acquisition, Bluedrop was in need of working capital for the integration and growth of the newly joined businesses. Flow Capital’s funding was easily combined with BPLI’s existing sources of capital and offered the company a solution that helped propel the company on a successful growth path as a merged entity, while avoiding shareholder dilution at the wrong time.

Since 2007, ConnectAndSell’s patented cloud sales acceleration platform has helped over 1000 B2B companies ranging…

Since 2007, ConnectAndSell’s patented cloud sales acceleration platform has helped over 1000 B2B companies ranging from small startups to Fortune 500 enterprises like IBM, Infoblox, Varonis to make 65 million dials and deliver 3.5 million sales conversations. ConnectAndSell integrates with popular CRMs like Salesforce, Microsoft Dynamics, SugarCRM, Netsuite and many others.

In May 2017, Flow Capital invested USD $1,500,000 in ConnectAndSell.  Our value proposition rang true: flexible and expandable growth capital that would help catalyze the next level of company expansion, without diluting the existing cap table. Like Boardwalktech and many of Flow Capital’s portfolio companies — and in spite of being situated in the heart of Silicon Valley —ConnectAndSell had no interest in taking venture capital, preferring to maintain operational control, without the high-pressure growth expectations of VCs.

Fixt Wireless Repair is an emerging Toronto-based B2B and B2C cell-phone and electronics repair chain,…

Fixt Wireless Repair is an emerging Toronto-based B2B and B2C cell-phone and electronics repair chain, set-up by a team of wireless industry veterans to capture a multi-billion-dollar market that is relevant to 90% of the North American population, is highly fragmented, and primed for an industry leader to emerge.

Founded in May 2015, Fixt had been establishing and growing their retail presence across the Toronto area.  In 2017, Flow Capital provided CAD $250,000 in revenue-based capital alongside other investors, allowing the company to continue its retail and corporate expansion plan. In 2018, Fixt had more than doubled its retail presence and bought out Flow’s investment.

Based in Toronto, Hybrid Financial provides investor relations and retail-focused origination and distribution services to…

Based in Toronto, Hybrid Financial provides investor relations and retail-focused origination and distribution services to the investment management industry throughout North America. Leveraging technology and one of the most comprehensive databases of the Canadian and US retail investment advisor landscape, Hybrid has become one of the leading financial sales and investor relations firms in Toronto.

Led by founder and CEO, Steve Marshall, Hybrid has been on a significant growth trajectory, offering a compelling value proposition to publicly listed corporations, investment managers and issuers seeking to find a more efficient and cost-effective means of generating sales through the retail broker/dealer networks.

In 2017, Flow Capital and its partners invested CAD $750,000 as a flexible form of capital that would support Hybrid’s growth and expansion into the US.

Dedicated to creating cultural hubs in every community in which it operates, Inner Spirit is…

Dedicated to creating cultural hubs in every community in which it operates, Inner Spirit is establishing a chain of recreational cannabis dispensaries under its Spiritleaf brand. Supporting local entrepreneurs by applying its award-winning franchise and retail models, Inner Spirit has more than 100 partnerships in place for Spiritleaf locations across BC, Alberta and Saskatchewan. Inner Spirit will also operate multiple corporate dispensaries. With a diverse portfolio of quality and curated lifestyle cannabis products – including Spiritleaf’s own locally and sustainably sourced lines – Inner Spirit’s Spiritleaf is positioned to be an iconic Canadian brand and the most trusted source for recreational cannabis.

Flow Capital initially invested in ISH’s subsidiary company, WatchIT!, and subsequently converted its revenue royalty into a significant equity interest in Inner Spirit.

Based in Los Angeles, California, Stability Healthcare uses an online platform to match the supply…

Based in Los Angeles, California, Stability Healthcare uses an online platform to match the supply of travel nurses with healthcare facilities that are in need of temporary nurses, significantly reducing placement times. Stability has changed the way that the industry has historically operated by creating transparency in selecting travel assignments by releasing information upfront to nurses including compensation, travel expenses and placement facility details. In 2015, 2016 and 2017, Stability was ranked on the Inc. 500 fastest growing private companies list.

Stability Healthcare was attracted to Flow Capital’s revenue-linked investment structure as it allowed the founders to continue growing their operations without compromising their ownership positions.  Flow Capital and syndicate partners invested USD $1,250,000 into Stability Healthcare in 2018.

Aquam is an integrated pipe infrastructure solutions company that provides proven technology solutions to owners…

Aquam is an integrated pipe infrastructure solutions company that provides proven technology solutions to owners and operators of both water and natural gas pipe infrastructures.

Flow Capital’s 2014 investment of CAD $2,000,000 enabled Aquam to significantly grow its business prior to raising its next round of equity.  In 2017, Aquam raised $26,000,000 from NewWorld Capital, realizing significant accretion for Aquam’s shareholders and a buyout of Flow’s royalty.

 

Boardwalktech (TSXV: BWLK) provides a patented digital ledger blockchain service for the extended enterprise, which its…

Boardwalktech (TSXV: BWLK) provides a patented digital ledger blockchain service for the extended enterprise, which its customers — including 23 of the Fortune 500 — use to run mission critical applications managing the digital exchange of information internally and with customers, channels, and suppliers. One of the most highly anticipated consumer products of 2017 was launched using the Boardwalktech digital ledger to manage its global supply chain.

After investing in Boardwalktech in December, 2017, Flow Capital played a pivotal role in the company’s CAD $10,000,000 go-public transaction on the TSX Venture exchange.

Flow Capital’s investment and advice catalyzed this transaction, enabling Boardwalktech to realize significant value for its existing shareholders, and to fuel the next level of its growth, backed by world-class investor Fidelity.

Factor75 is an online, subscription-based, personalized chef service that is positioned at the intersection of food…

Factor75 is an online, subscription-based, personalized chef service that is positioned at the intersection of food and fitness. The company’s name, Factor75, stands for the philosophy that 75% of fitness results and everyday performance derives from diet.

All meals are made gluten, soy, GMO, hormone, antibiotic and preservative free, with keto and paleo options.

Factor75’s founders are experienced operators and private equity investors, to whom the value proposition of Flow Capital’s revenue royalty — fairly priced, zero dilution, highly flexible — was immediately clear.

In December, 2016, Flow led a USD $750,000 syndicated royalty investment in Factor75. Since then, the company has significantly grown the size and value of its business, expanding geographically and into adjacent markets such as vitamin supplements.

Dionymed Holdings, dba Herban Industries, is a California based group operating as a licensed cannabis…

Dionymed Holdings, dba Herban Industries, is a California based group operating as a licensed cannabis manufacturer and distributor across the newly regulated State. An early mover in the industry, DionyMed, through its operating entities, sources cannabis distillate, flower, edibles and other related products from licensed suppliers for delivery through its truck fleet, to the 300+ licensed dispensaries throughout California.

Led by serial entrepreneur Edward Fields, and cannabis industry veteran Peter Kampian, the DionyMed team saw the significant value in leveraging revenue-linked capital to grow their business without affecting their cap table.

In 2018, Flow Capital’s CAD $1,000,000 investment helped kick-start their ramp in revenues without giving up any dilution, an important aspect to the founders who largely hold the business.

InteriorMark, formed in 2007, is an online retailer of home theater  furniture and seating, selling…

InteriorMark, formed in 2007, is an online retailer of home theater  furniture and seating, selling both through it’s own online presence as well as through various large retail channels such as Best Buy. Since it’s inception, InteriorMark’s home theater business has been flourishing, becoming a leading supplier in the US.

The business, tightly held by the founders, took on a Flow Capital investment of USD $1,750,000 in 2015 as an addition to their capital stack, as the funds provided them the working capital flexibility to continue to expand without dilution. Since the time of the original investment, operations have grown significantly with an additional USD $150,000 was advanced in 2016 and subsequently bought out in 2017.

 

Solar Brokers is one of the largest solar providers in Canada and the first residential…

Solar Brokers is one of the largest solar providers in Canada and the first residential solar brokerage in the country. Since its founding in 2012, the company has experienced revenue growth of over 8900%. To date the company has brokered over 30 megawatts of residential solar in Ontario. Based in Toronto, Solar Brokers and its affiliate companies oversee a staff of over 100 industry-leading professionals. Through its proprietary tools, including state-of-the art project and customer relationship management software, and lead-generating interactive kiosks, Solar Brokers is redefining how consumers adopt residential solar.

Flow Capital and JV partners invested CAD $1,075,000 in 2018, and subsequently helped the company to raise funds from US investors into the existing royalty structure.  Our capital will help Solar Brokers invest in expansion, and will help to attract larger debt and equity investors.

TruGolf began as a subsidiary of Access Software. In 1999, Access Software was purchased by…

TruGolf began as a subsidiary of Access Software. In 1999, Access Software was purchased by Microsoft for its expertise in golf software development. Following the acquisition, TruGolf maintained the core programming and graphics team of Links™, the best selling PC golf franchise ever.

The TruGolf team is passionate about driving the golf industry with the most realistic simulation engine possible. It has built award-winning video games (Links™), innovative hardware solutions (TruFlight), and now an all-new eSports platform to connect golfers around the world with E6 CONNECT.

Flow Capital’s USD $1,000,000 royalty investment enabled TruGolf to expand both its product portfolio, with E6 CONNECT, and the geographies in which it sells — all without diluting its existing shareholders.