LAGO Writes First Institutional Checks To Fund Growth Of WIN Reality
LAGO helped WIN Reality rapidly expand into new channels by providing multi-tranche capital support as their first institutional investor.
Challenge
WIN Reality needed growth capital to enter a new, large channel. Given the significant expected growth, the company sought to fund this initiative without incurring the dilution associated with raising equity.
Outcome
LAGO provided a founder-friendly term loan and participated in two tranches of equity to fund the successful expansion into the youth baseball market. LAGO's initial credit investment allowed the company to rapidly ramp sales before pursuing a large Series A, which was subsequently consummated at an attractive valuation.
WIN Reality built a robust virtual reality batting practice tool for professional baseball players, which was quickly adopted by numerous MLB and Division I teams. LAGO was approached by WIN Reality to help fund their ambitious plans to penetrate the large at-home youth travel baseball market. Having already identified virtual reality / gaming / metaverse as a core megatrend driving our thematic investment philosophy, LAGO was able to quickly recognize the opportunity and became the first institutional investor for WIN Reality via a founder-friendly term loan. LAGO continued to support the company by participating in the Company’s SAFE note, paving the path for a highly successful Series A, in which LAGO also participated.