Growth Financing for TravelBird from Main Mezzanine Capital
The rapidly growing online travel company TravelBird attracted a Mezzanine loan from Main Mezzanine Capital to finance its explosive growth and quality improvement. In 2014 and 2015 TravelBird invested € 32 million in the personalized digital infrastructure developed by TravelBird itself. This new loan will be used for the final stage of the previous growth investments. Until now Main provided 10 mezzanine loans, ranging from € 1 to 5 million. The loan to TravelBird is the largest loan in its portfolio since its inception in Q2 2014. In 2015 TravelBird (www.travelbird.nl) has surprised and inspired 1.2 million travellers with an unforgettable trip and through this realized a revenue growth of 85%. TravelBird recently substantially invested in optimizing the site and personalizing the app. This has optimized the digital infrastructure of TravelBird and through the loan they are able to continuously be one step ahead in the coming years. Symen Jansma, CEO and co-founder of TravelBird: “I am very pleased with this opportunity. The large loan from Main Mezzanine Capital enables our company to match even better our offers to the individual wishes and needs of our already 5 million customers (travellers). These personalized quality improvements for our customers (travellers) are crucial for future growth. Furthermore, the selected loan structure also prevents further dilution of the existing shares.” Main Mezzanine Capital provides in the growing need of companies to attract equity capital, while being structured as a loan. The process and documentation is highly standardized, making it an easier process for management in its alignment with all stakeholders. Lars van ‘t Hoenderdaal, CEO Main Mezzanine: “We have known TravelBird for quite some time now and we are impressed by the combination of achieving international growth with, since Q3 2016, profitable operations. This is brilliant for a ‘scale-up’ company with all its technological, operational and technical marketing challenges. We therefore review the management team as a strong one and have faith in their abilities of continuing profitable growth.” Main Mezzanine Capital is part of Main Capital Partners (www.main.nl), an investment and financing company focused on profitable and growing companies in the software and TMT sector within the Netherlands and Germany. The funding of Main Mezzanine Capital comes from its own shareholders, as well as high net-worth individuals, family offices and (former) entrepreneurs, who wish to set aside their assets in a responsible and cost-effective manner – According to Van ‘t Hoenderdaal a sort of “crowd closed fund”. The market for mezzanine loans (an alternative form of financing) is booming. The combination of low interest rates on savings, a favorable development of the economy and the strict solvency rules for banks encourage this development. Nielen Schuman acted as financial advisor to TravelBird.