How BigVU Achieved Breakeven Using Non-Dilutive Growth Financing
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TL;DR
Video platform BigVU achieved breakeven using non-dilutive financing from Efficient Capital Labs, improving cash flow, paying off expensive debt, and fueling growth in marketing and operations for scalable global expansion.
Highlights
BIGVU achieved breakeven with the help of Efficient Capital Labs' financing.
The financing enabled BIGVU to reduce cashflow issues by bridging gaps in payment cycles.
BIGVU reduced high-cost debt, allowing for more reinvestment in growth.
Our experience was very easy, no complaints - quick and very good. ECL’s financing is more fair for everyone, you know what your margin and costs are and can put it in a budget - it is more simple than other forms of financing which can be complicated for a small company.
Learn how succeeded with ECL financing
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About the company
BIGVU is an innovative software platform that empowers small businesses to create professional-quality videos using only their smartphones. With operations based in both New York City and Israel, BIGVU has become an essential tool for over 2.5 million users across more than 70 countries. The platform offers a comprehensive suite of features, including a teleprompter, automatic captions, branding with logos and motion titling, as well as customizable intros and outros. BIGVU simplifies video creation, making it accessible to anyone, regardless of their technical skills.
- Founded: 2016
- Headquarters: USA
- Team Size: 25-40
Challenges
Despite its growing user base and popularity, BIGVU faced financial obstacles that threatened to slow its growth
Needed Capital for Growth
As a bootstrapped company, BIGVU needed additional capital to fuel its expansion, particularly for advertising efforts that would drive further growth. However, being largely self-funded limited their access to the necessary resources.
Cashflow Constraints
BIGVU’s primary source of revenue is Apple, which typically takes up to two months to deliver payments. This delay in cash inflow created substantial cashflow issues, making it difficult for the company to manage day-to-day operations and plan for future investments.
High-Cost Debt on the Balance Sheet
To manage these cashflow challenges, BIGVU relied on expensive debt solutions, including invoice factoring and debt with repayment terms linked to cashflow. While these options provided immediate funds, they also carried high costs that fluctuated with revenue, making budgeting unpredictable and increasing financial strain.
ECL Solution
BIGVU partnered with Efficient Capital Labs in early 2024 to secure the capital needed to fuel growth, manage cashflow, and reduce expensive debt.
Fuel Growth: The financing allowed BIGVU to invest in operations and marketing, driving user acquisition and expansion.
Manage Cashflow: With ECL’s support, BIGVU could bridge the gap between revenue recognition and actual cash receipt, smoothing out cashflow fluctuations.
Reduce Debt Costs: The financing from ECL enabled BigVu to pay off some of its more expensive loans, reducing the company’s overall debt burden.
Before Efficient Capital Labs
- Recotap was growing but facing cash flow constraints due to delayed customer payments.
- Product rebuild and innovation plans were at risk due to lack of ready capital.
- Equity fundraising pressure amid scaling operations.
After Efficient Capital Labs
- Cash flow stabilized through non-dilutive financing, allowing smoother day-to-day operations.
- The engineering team expanded by 50%, accelerating product development.
- Maintained ownership and delayed traditional VC fundraising.
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ECL Impact
The financing from ECL helped BIGVU to focus on growth, and achieve critical financial goals.
Achieved Breakeven Point
- With the additional capital, BIGVU was able to reach its breakeven point, positioning the company for long-term sustainability.
Paid Off Expensive Loans
- The company successfully retired high-cost debt, freeing up cash for reinvestment in growth initiatives and reducing financial strain.
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The Invitation
Founders who drive the future, deserve capital that accelerates with them. Let’s make this the most efficient chapter of your story.