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At a Glance
Upper90 has closed $55 million in an equity fund dedicated to e-commerce businesses to provide equity capital to help earlier-stage, capital-intensive technology businesses to assist them in optimizing their capital structure for long-term success. Offering debt and equity funding,CEO Billy Libby this fund shall be entirely devoted to equity financing.
The new fund shall invest equity in approximately 15 e-commerce companies. The surge of e-commerce has been significant. Commenting on the focus towards equity financing in the e-commerce sector, Upper90 and Chairman Jason Finger said,
“Part of the reason we launched an equity fund in the [e-commerce] rollup sector is that equity is an important piece for you to get the highest quality lender — they’re going to want to know that there’s equity protection underneath their credit facility.”
Finger and Libby also see the e-commerce aggregation market as the one “most suited to their approach.” There has been a growth of about 32 percent in 2020 by e-Commerce platforms to reach $790 billion. Apart from the US, reports have also indicated that their penetration into Latin America has altered many businesses’ game. Latin America is expected to be the fastest-growing retail e-commerce market this year.
With their e-commerce fund, Finger and Libby are looking to deepen their partnership by investing in their earliest stages and also offer support to portfolio companies that may require equity capital as and when they expand.
“The infrastructure developed by Amazon, Google, Facebook, Shopify, BigCommerce, and others, has created a golden age for entrepreneurs that can easily start a business online. However, access to growth capital, especially flexible capital, is still scarce.”
Backed by about 300 business builders, Upper90, the hybrid investment firm provides founder-friendly credit and equity, strategic support, and top e-commerce, enterprise, and fintech businesses. They have already infused capital worth $15.billion to market leaders such as Thrasio, Clearbanc, Crusoe Energy, Octane Lending, etc. In fact, for Thrasio and Clearbanc, Upper90 was the first investor.