The challenge for ampere.cloud

Maintaining flexibility in currently turbulent market conditions

ampere.cloud was constantly growing, but as they got closer to starting fundraising for a Series A, the economy took a downturn, VC investments and valuations started to decrease and warnings to save cash were coming from all sides.

Due to market conditions, the time was not right for a large equity round and many traditional banks are often unsuitable for fast-growing tech startups that value flexibility because they have not yet adjusted their financing models. As a result, ampere.cloud began looking into alternative debt funding solutions.

The solution

Strengthen cash position and postpone their Series A

For ampere.cloud, re:cap appeared at exactly the right time as Frederik Merz (CBDO ampere.cloud) summarized,

"on the one hand, we have constant growth and increasing ARR and on the other hand, current market conditions are making equity fundraising harder."

Thus, to strengthen their cash runway and maintain flexibility to continue to grow in the current downturn, ampere.cloud chose re:cap to bridge the gap so they can raise a Series A from a position of strength.

Furthermore, Frederik highlights that diversifying their capital stack early on is highly important to them, rather than relying solely on equity financing. He also mentions that after raising a Series A, they will keep re:cap in their capital stack to optimize their cash flow and, for example, finance hardware that they rent to customers.

Learn more about how re:cap can give your financial flexibility and enable you to optimize your next fundraise here.

“On the one hand, we have constant growth and increasing ARR and on the other hand, current market conditions are making equity fundraising harder.”

Frederik Merz
CBDO and Co-Founder, ampere.cloud