Toronto-based startup Flixel Photos Inc., a developer of software that allows users to combine features of video and photos, has secured $770,000 in financing from the Canadian Media Fund and individual investors. The transaction, which was arranged by Cranson Capital Securities Inc., follows an undisclosed investment made in Flixel Photos earlier in August by Fierce Capital, the venture arm of U.S. fashion company The Tyra Banks Co. Funding will be used to enhance the company’s software application and increase marketing initiatives.
Cranson Capital Announces Closing of Flixel Photos Inc. Financing
TORONTO, Aug. 14, 2013 /CNW/ – Cranson Capital is pleased to announce the closing of the Flixel Photos Inc. “Flixel” financing, which totalled $770,000. Cranson, which led the financing, was responsible for facilitating a loan investment of $375,000 from the Canadian Media Fund “CMF” through its Cranson Capital Solutions corporate finance advisory division. An oversubscribed private placement of $395,000 from a select group of high net worth accredited investors was arranged by Cranson Capital Securities Inc.
Flixel, an innovative new application that allows users to combine features of video and still photos creating a “Cinemagraph” has grown substantially since inception two years ago and is trying to change the digital photography market.
“I am impressed with the dynamic group of qualified investors which participated in the private placement,” Philippe LeBlanc, CEO, Flixel said. “This small group of high net worth investors bring experience, professional expertise and industry knowledge which will add value for Flixel moving forward.”
Recently, modeling icon, Tyra Banks announced she invested in Flixel through her own Fierce Capital. Banks has incorporated Flixels in her current season of the hit TV show America’s Next Top Model “ANTM” which will generate significant exposure and awareness for the app as well as the company’s B2B service., which offers professional services to global brands and entertainment franchises providing high-end Cinemagraphs, as seen on ANTM.
Flixel has also collaborated with other brands including the Marilyn Monroe clothing line in a recent exclusive Macy’s digital marketing campaign. The Cinemagraphs were used to bring the collection to life.
One investor that Cranson Capital brought into the deal was Brice Scheschuk, CFO, Globalive / WIND Mobile, he added: “Investing in Flixel has significant upside potential. The company has a very attractive valuation relative to product stage as well as an immediate revenue generating model. With strategic partners like Tyra Banks to support the success of the company and a competitive advantage in the industry, Flixel has the foundation to be a breakout success.”
“I am extremely happy to see the early stage success of Flixel. The additional funds will allow the company to enhance its software application and increase marketing initiatives during this period of rapid growth” said, Devon Cranson, President, Cranson Capital. “Recent Strategic partnerships with Marilyn Monroe, Tyra Banks and ANTM provide a solid platform for further expansion. I look
forward to continuing a strong relationship with Philippe and the Flixel team.”
About Cranson Capital
Cranson Capital is a boutique investment banking firm which focuses on providing financial and advisory services to small to medium sized growth businesses. The business consists of two divisions; Cranson Capital Securities and Cranson Capital Solutions, both of which offer unique services to support our investors and entrepreneurs. Cranson Capital Securities is registered with the Ontario Securities Commission as an Exempt Market Dealer and specializes in raising capital from accredited investors for private placements in real estate developments, technology start-ups and high growth companies. Cranson Capital Solutions is a corporate finance advisory firm which focuses on finding the right financing solutions for our entrepreneurs.
Flixel is an innovative new application that allows users to combine features of video and photos creating a “Cinemagraph”, a still image with moving elements. The company operates in a cross-market between photography and editing software, and its patent-pending technology allows users to create Cinemagraphs within seconds on mobile and desktop. Flixel’s vision is to become the premier platform for discovering, creating and sharing Cinemagraphs. The company is led by group of experienced entrepreneurs, expert developers and technology veterans. For more information visit www.flixel.com or click here to download Flixel from the App Store.
SOURCE Cranson Capital
Photo courtesy of Shutterstock.