Wintrust Ventures Provides Both Equity and Debt Financing for Packback
In 2015, Wintrust Ventures invested in Packback’s Series A, followed by an investment into the 2018 Series B to support growth. As the Company continued to grow, Wintrust worked closely with Packback to determine a debt financing structure to help mitigate the seasonality of payments.
Challenge
Due to the seasonality of the business that is tied to the beginning and ending of school semesters, the Company was in need of a financing structure to smooth out cash balances. After developing a long relationship with Wintrust Ventures on the equity side, both Packback and Wintrust started to explore a debt structure appropriate for this challenge.
Outcome
Wintrust Ventures worked closely with Packback to provide a revolving line of credit that will help bridge the seasonality of payments. The increase in funds provides a liquidity cushion at the end of semesters, while also helping the business to avoid increased equity dilution during these periods. Wintrust Ventures continues to support the business in its equity, debt, and banking needs.