Within 6 months of engaging with Investable, Kailo had the option of debt, equity investments or an acquisition. They chose to be acquired for $20M in stock.
Kailo Energy built affordable and portable battery energy storage products for residential and commercial customers, using a unique reseller sales model. They started as a spinout of another company and the parent company provided about $1.8M in capital and resources.
Kailo needed to raise another round of funding but had substantial risk from the cap table, decision-making processes, and the management structure of the company. Using the Investable due diligence and capital strategy services, Kailo was able to surface risks posed to investors, and realized they could delay an equity raise and focus on raising debt to complete the first production run of the product. They began to mitigate their cap table, management, and process risks while they built out their sales and distribution channels.
Without Investable, Kailo intended to raise money despite the risk they carried. This could have resulted in suboptimal investment terms, slower growth, and a missed acquisition opportunity.
Instead, they were able to mitigate their risks and become healthy enough to receive investment offers, and ultimately be acquired for $20M just 6 months later.
" I felt more equipped to lead my company through our raise and the outcome was that we reduced our cost of capital significantly through operational excellence. Entrepreneurship can be lonely and stressful, but I always had someone to talk with about challenges. I would get so much value out of those calls and couldn't believe how much time they took to listen to and create a strategy around my unique challenges."