NEW YORK — Ampla Technologies, a provider of tech-enabled financing solutions for emerging consumer brands, has closed a $40 million Series A funding round, co-led by VMG Partners and Forerunner Ventures, with participation from existing investor Core Innovation Capital.
This announcement brings the Company’s total funding to $380 million in equity and debt financing, which will enable Ampla to impact even more small-to-medium sized businesses (SMBs) in the consumer brands space, strategically increasing its talent pipeline and enabling the rollout of new products. Additionally, the Company plans to increase its headcount by 100% over the next 3-6 months, from 35 to 70 employees.
As the supply chain bottleneck continues to worsen, SMBs are feeling the squeeze more than ever. An estimated 800,000 SMBs have already had to close their doors this year, and 86% of owners anticipate that they will continue to face disruptions in the coming months.
Anthony Santomo, Founder and CEO of Ampla, said: “Before Ampla, emerging SMBs had nowhere to turn. Traditional banks are not set up to service today’s entrepreneurs. They often require cumbersome ‘paper-based’ underwriting and reporting, years of business history, personal guarantees, and upside in the form of warrants. Other solutions that are structured as Merchant Cash Advances (MCAs) offer quick access to capital, but the ‘flat-fee’ based rates almost always result in Annualized Percentage Rates (APRs) that are 2-4x that of a credit card. Unfortunately, many entrepreneurs do not realize the full cost burden of MCA solutions until it is too late. Entrepreneurs and modern SMBs are finally realizing the true cost of these solutions.”
Ampla aims to level the playing field and provide a viable capital solution for the modern commerce brand by providing fully transparent interest rates, larger credit limits, and non-dilutive capital.
By providing easy-to-access capital to its clients, Ampla is solving the cash flow problems faced by many SMBs currently impacted by stalled growth and ongoing supply chain constraints. Ampla’s platform solutions enable retail, omnichannel, and eCommerce companies access to previously untapped market opportunities.
Santomo added: “We are incredibly excited to be partnering with VMG Partners and Forerunner Ventures at this pivotal moment in our company’s history. With the funds provided by our partners, we are strongly positioned to grow our existing platform to reach more SMBs and provide them with liquidity and non-dilutive capital to successfully run their businesses. Especially during the holiday season, it is crucial that SMBs balancing a fragile supply chain get the help they need to meet customer demand and make it to the new year. We are grateful for the continued support and trust of our investors who believe in our growth strategy.”
Jason Bornstein, Principal at Forerunner Ventures said, “While there are more emerging consumer brands today than ever before, most brands struggle to unlock access to working capital despite attractive economics and growth potential. Ampla has created a sophisticated financial platform to fill this gap, starting with non-dilutive lines of credit. As early champions of digital brands, and with great appreciation for omnichannel distribution strategies, we at Forerunner are thrilled to partner with Anthony and the Ampla team to reimagine how brands are funded while empowering and inspiring ambitious entrepreneurs.”
