Private real estate debt: An attractive opportunity for institutional investors
Key takeaways
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Artemon acted as advisor and lead investor in the successful placement of a convertible loan (Series A4) for ph. Ltd., a Swiss scale-up and manufacturer of pharmaceutical dietary supplements.
Challenge
Over the last years, KA-EX managed to successfully continue the journey that started in 2017 and established itself as the #1 recovery product in professional sports by providing some of the leading football clubs in Swiss Super League and German Bundesliga. In 2022, they started supplying KA-EX to the Sauber Formula 1 team and the French football club Paris Saint-Germain.
In 2023, KA-EX will launch a Ready-to-Drink product and jump start the business in the US. “We have finished the R&D of our Ready-to-Drink version of KA-EX, and - in all modesty - it turned out so freakin´ cool! We are now launching a pilot test with 45´000 bottles in Switzerland and the US, but to scale production, we need working capital”, says Pedro Schmidt, CEO and Founder of KA-EX.
Given the strong macro-economical headwinds, resulting in a VC crisis, fundraising for ventures has been extremely challenging over the last 2 years.
(from left: Samuel, Pedro, Manuel)
Solution
In order to support fundraising and achieve these ambitious goals, Pedro appointed Artemon in 2022 as KA-EX’ advisor with the task to explore the options to raise additional funding.
During the fundraising process, Artemon reached out to a significant amount of VC’s, family offices and private investors and generated lots of traction. “Artemon brought tier-1 VC’s on the table during a dried-out VC market”, highlighted Pedro.
Artemon supported a convertible loan round and helped to significantly exceed the minimum funding requirements of KA-EX.
Benefit
With the Ready-to-Drink launch, KA-EX solves different challenges with a single blow, awareness, habituation, and branding. The launch of the new product is not only a new chapter in the company’s history; it is a new era! Pedro concludes, “the successful closing of this fundraising is a critical cornerstone for the implementation of our overall business strategy”.
About KA-EX
KA-EX is a patented dietary supplement product that boosts the body’s natural recovery cycle after intensive sports or alcohol consumption.
In 2017, KA-EX launched in 15 pharmacies without any marketing budget. Within a few months, it became available in all pharmacies across Switzerland and, a year later, found itself on the shelves of all drugstores, major supermarkets, and convenience stores nationwide.
Today, KA-EX is a leading supplier to tier-1 sports clubs within Swiss Super League, German and Austrian Bundesliga, NFL, Formula 1, and many more.
Disclaimer
This commentary is provided for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities or financial instruments. The information contained herein is not intended to provide investment, legal, or tax advice, and should not be relied upon in making any investment decisions. Investing in securities involves risks, including the potential loss of principal. Past performance is not indicative of future results. Before making any investment decisions, investors should carefully consider their own investment objectives, risk tolerance, and financial situation. The views and opinions expressed in this document are those of the author(s) and do not necessarily reflect the views of Artemon Capital Partners. Artemon Capital Partners does not guarantee the accuracy or completeness of the information provided herein, and disclaims any liability for any errors or omissions. Investors are advised to consult with their financial advisor or other qualified professionals before making any investment decisions.