Montreal’s Beyond the Rack Secures $10 Million Facility from Silicon Valley Bank
Montreal ecommerce fashion retailerBeyond the Rack has secured a debt financing facility from Silicon Valley Bank for $10 million. A facility is an agreement to advance money to a company in order to accomplish a specific activity. It’s basically a loan.
Silicon Valley Bank is a subsidiary of SVB Financial Group, which dedicates itself to financing the North American tech scene.
CEO Yona Shtern plans to dedicate the funds to marketing and to expanding Beyond the Rack’s product offering, perhaps venturing into Beyond the Rack branded clothing. As it stands, Beyond the Rack offers a few non-clothing branded items, such as pillows and shoe racks, accounting for approximately 2% of its overall revenue.
By contrast, Montreal clothing retailer Frank & Oak offers its own clothing line and started out making its name online before opening a brick-and-mortar store in the Mile End district.
Beyond the Rack has raised almost $80 million since launching in 2009, and despite having a 13 million-strong membership has yet to turn a profit.