ThermiAesthetics, a fast growing, privately held aesthetic technology company, has secured $9 million of debt financing from Cypress Growth Capital and Silicon Valley Bank. The investment will be used to support additional FDA applications, advance a pipeline of novel temperature controlled radio frequency products, and expand marketing efforts in building consumer awareness and sales force expansion. These closings occurred simultaneously, and Cypress and SVB have previously collaborated on a number of other financing transactions.
Cypress Growth Capital will provide up to $4 million in royalty-based growth capital to ThermiAesthetics. This investment provided ThermiAesthetics with $2 million at closing, with an additional $2 million available upon ThermiAesthetics meeting certain conditions.
Silicon Valley Bank will provide up to $5 million to ThermiAesthetics pursuant to a senior secured loan. This loan provided ThermiAesthetics with $3 million at closing, with an additional $2 million available upon ThermiAesthetics meeting certain conditions.
“This minimally dilutive financing from Cypress Growth Capital and Silicon Valley Bank supports the ThermiAesthetics’ flagship ThermiRF product line, allows the immediate US launch and further development of the ThermiVa system for vaginal laxity and the formal launch of several new products in the rest of the world,” said Paul Herchman, CEO.
Mike McDonald, CFO also stated, “Over the last 12 months we have evaluated various potential capital sources and determined that the combination of acquiring funds in the form of royalty financing from Cypress Growth Capital and senior debt from Silicon Valley Bank allowed our shareholders to retain valuable equity ownership while positioning ThermiAesthetics for further rapid growth and profitability.”
“It is our pleasure to work with ThermiAesthetics, and other innovative companies around the world that are bringing visionary ideas to the aesthetic market,” said Michael White, Managing Director, Life Sciences, of Silicon Valley Bank's Southwest Division. “Our objective is to help the ThermiAesthetics team move its business forward quickly with the right financing, connections and global services it needs as the company expands and prepares for its next phase of growth.”
The ThermiAesthetics flagship product is the ThermiRF Temperature Controlled Radio Frequency Generator System and is FDA cleared for dermatological and general surgical procedures for electrocoagulation and hemostasis, and to create lesions in nervous tissue. ThermiRF is an advanced technology using finely controlled thermal energy. It is a multi-use platform, which promotes increased patient safety and clinical effectiveness, while providing versatile solutions for physicians serving the aesthetic market.
Cypress Growth Capital is the first, largest and most active royalty-based growth capital firm in the United States. An alternative to traditional debt and equity instruments, royalty-based growth capital offers entrepreneurs access to significant capital while preserving equity and control. Cypress invests $1 million to $5 million in software and technology-enabled business services companies located in the Southwest with annual revenues between $3 million and $20 million. With available capital, a proven track record of seventeen royalty-based investments, and an investment team that has extensive entrepreneurial and operating experience, Cypress Growth Capital is a proven and valued funding partner.
Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group.