As Safely Builds A Risk Mitigation Platform For The Short-term Rental Market, LAGO Provides A Multi-Tranche Capital Solution
LAGO supported Safely's rapid ascent to market leadership in insuring the peer-to-peer short term rental market via debt and equity-like instruments.
Challenge
A market-leading InsureTech company, Safely was seeking strategic capital to fuel an international expansion strategy and build a captive insurance carrier, while refinancing a credit facility that had started to amortize.
Outcome
LAGO was able to provide an enterprise value-based term loan that not only refinanced Safely's existing debt, but provided additional liquidity to support growth. Additionally, LAGO led a convertible note tranche to provide the company with additional growth capital and put the company on a path to raise a Series A as a market leader in this rapidly growing industry.
Typical home owners’ insurance does not cover claims associated with short-term rentals. In response, Safely created an attractive insurance product and risk-mitigation ratings system to support the rapid growth of peer-to-peer vacation rental industry. Seeking to expand internationally and to stand up a captive insurance carrier, Safely approached LAGO for capital support to accelerate these growth initiatives.