SaaS & Agriculture Systems Manufacturer

Business Capital Sructures and Secures  $5MM Equipment Lease Financing Facility for Leading Designer/Manufacturer of Soil & Irrigation Monitoring Systems

“Working with Business Capital was a great, positive experience for our team.Their insight into the process and professionalism was of critical value. Business Capital proved to be key advisors, moving swiftly and helping us secure the optimum financial solution during this time of high-growth for our company. This investment will help us fuel the business and focus on providing our customers with best-in-class precision irrigation services, during what is a critical time for water resources in agriculture.” -Jocelyn Boudreau CEO, Hortau

 

Our Client

Hortau is a SaaS/Agriculture platform and pioneer in real-time crop yield management systems which help growers anticipate plant stress, allowing them to deliver the proper amount of water and nutrients at precisely the correct time. Its products employ patented technology to wirelessly monitor critical soil conditions, provide instant information to farm managers, and help them time irrigation to increase yield, minimize crop damage, and maximize water and fertilizer efficiency. The Company’s proprietary wireless system and sensors are the only products on the market which are able to accurately measure soil tension on a 24/7 basis. It currently has 5,000 stations and 25,000 sensors installed across over 600 farms spanning the US and Canada gathering over 100,000 data points per hour.

The Situation

A startup funded with venture capital and investor debt, Hortau initially experienced modest growth due to a long sales cycle with new customers. The comprehensive and economic benefits of its system were quickly realized by customers and the Company began to experience hyper growth . An infusion of working capital was required to fund a substantial increase of its product leasing portfolio and revenues planned for 2015 and beyond.

The Solution

Hortau’s sponsor, Avrio Capital, had worked successfully with Business Capital on prior portfolio investments and contacted the firm to structure debt financing. BizCap was quickly able to deliver a $5MM debt-based equipment lease portfolio financing facility providing the necessary capital to fund Hortau’s strategic objectives and fuel future sales growth.

“BizCap’s thoughtful and comprehensive approach was integral in securing the growth capital required to fuel the Company’s business plan. As an equity investor in   Hortau, we were very grateful for the hard work and support from Chuck Doyle and his team in setting the stage for their continued expansion and positioning this Company to enhance its global leadership in the precision irrigation sector.” -Aki Georgacacos, Co-Founder & Sr. Managing Director, Avrio Capital

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