Funding Round Will Accelerate Hiring and Recruitment Efforts, New Market Expansion, and Complementary Product Launches
Furthers Commitment to Supporting Small-to-Medium Businesses That Are Facing Supply Chain Constraints Ahead of the Holiday Season
The Financial Platform for the Modern Commerce Brand
NEW YORK–(BUSINESS WIRE)–Ampla Technologies (together with its affiliates, “Ampla” or the “Company”), a leading provider of tech-enabled financing solutions for emerging consumer brands, today announced the close of its $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, commented: “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 included: “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.”
This accretive partnership with VMG Partners and Forerunner Ventures will further Ampla’s mission of providing an array of financial solutions to SMBs. The well-experienced group of partners at VMG Growth fund established itself as a premier consumer brand with investments in Daily Harvest, Spindrift and Quest Nutrition. VMG Partners debuted VMG Catalyst fund two years ago, dedicating funds to businesses with the infrastructure, services and technology stack supporting other businesses. VMG Partners’ existing consumer expertise and broad ecosystem will help support Ampla’s brand-first mentality and accelerate growth across the business.
Brooke Kiley, Partner at VMG Catalyst commented, “We are strong believers in Ampla’s mission to provide affordable and transparent financing solutions to consumer brands – particularly minority and women-owned businesses. Right now, there’s a lot of confusion and it’s difficult to understand your options. We believe that Ampla’s innovative solution is enabling the next generation of brands to be built by a diverse group of entrepreneurs. Ampla is modernizing the lending space and we look forward to supporting their continued growth and innovation.”
Founded in 2019, Ampla is a proven strategic partner to many emerging consumer brands and SMBs, empowering them to grow their businesses. Nearly 30% of Ampla’s customer base is made up of companies founded by people of color, including notable brand Partake. Ampla also frequently partners with female-founded companies, like Bev, which accounts for over 40% of its customer base.
Similarly, for the last decade, Forerunner Ventures built its name around expertise in eCommerce, with successful investments in companies like Glossier, Warby Parker, and Hims. More recently, Forerunner Ventures uses its expertise in consumer-focused businesses to push into business-to-business opportunities that are helping alter the future. Ampla is excited to partner with Forerunner, pointing to investments in online wholesale marketplace Faire and challenger bank Chime.
Jason Bornstein, Principal at Forerunner Ventures commented, “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.”
The two firms have made it clear that Ampla is the future of commerce enablement and is creating a product that will supercharge the expansion of the companies listed, and many others.
About Ampla
Ampla Technologies is a New York-based financial technology company with an overarching mission to provide tech-enabled financial solutions to help consumer brands grow in one intuitive platform. Ampla’s flagship working capital product solves universal pain points caused by major cash outlays for inventory purchasing and marketing spend. Ampla currently serves SMBs in the consumer brand industry across both eCommerce and retail channels. Ampla leverages innovative technology, proprietary data and machine learning to support its data analytics, due diligence and lending. Learn more at www.getampla.com.
About VMG Partners
VMG Partners is focused on partnering with entrepreneurs and managers to support the growth and strategic development of leading branded consumer product and technology companies. VMG currently invests through its Growth and Catalyst funds. Since its inception in 2005, VMG has provided financial resources and strategic guidance to drive growth and value creation in over 55 companies. VMG launched the Catalyst Fund in 2019 to invest in consumer technology and commerce enablement tools. For more information on VMG please visit www.vmgpartners.com.
About Forerunner Ventures
Forerunner Ventures is a VC firm focused on understanding the mindset of the modern consumer and identifying the companies poised to deliver what they need. With a strong pulse on the retail and commerce landscape, Forerunner invests in companies across sectors—from fintech to marketplaces, creator platforms to commerce enablement tools—as they reimagine how, why and with whom we transact. The firm’s investments include Chime, Faire, Glossier, Away, Ōura, Curated, Dollar Shave Club, The Farmer’s Dog, and Warby Parker, among others. For more information, visit forerunnerventures.com.
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MKA For Ampla
Casie Connolly / Ashley Areopagita
(646) 386-0003
ampla@mkacomms.com
