Volusion announced the completion of $35 million in debt financing to expand its ecommerce software and services.
The Austin-based company secured the line of credit from Silicon Valley Bank. The company plans to use the money to further develop its software platform and to hire product, support, sales, marketing and IT workers.
The company decided to finance its growth through debt financing instead of venture capital or private equity to retain ownership. It plans to file an initial public offering in the future.
“As Volusion continues to grow and power some of the most successful merchants’ online presence, we believe this new financing will give the team the flexibility it needs to tackle its goals in 2014 and beyond,” Blake English, managing director for Silicon Valley Bank in Austin, said in a news release.
Volusion, founded in 2009, currently has more than 400 employees.
The company has “aggressive expansion plans” for its products targeted at the small to medium sized business market, according to Clay Oliver, CEO of Volusion.
Tag: Silicon Valley Bank
Texas had 11 percent of all angel group deals in the second quarter of this year, according to the latest Halo Report.
The deals, with a median investment round of $590,000, had pre-money valuations of $2.5 million. And 74 percent of the deals were syndicated.
“When angels co-invest with other types of investors the media deal size is $1.95 million,” according to the report, compiled by Silicon Valley Bank and its partners the Angel Resource Institute and CB Insights.
The Central Texas Angel Network was the most active angel investment group nationwide. The report doesn’t go into detail about the number of deals or dollars invested by CTAN.
Seventy percent of angel group deals in the second quarter were completed outside California and New England, although 36 percent of dollars are invested in these regions,. California led in number of deals, with 17 percent share of angel group investments.
The bulk of the deals focused on Internet, healthcare and mobile companies receiving 71 percent of the investment deals and 79 percent of the dollars, an increase from the first quarter.