Office space, meeting rooms, events: 1000 Satellites specializes in providing flexible workplace concepts close to where people live. The Mannheim-based startup offers companies in various regions office space in both urban and rural areas. Currently, almost 50 employees take care of 12 locations in the Rhine-Neckar, Munich, and Hamburg regions.
Bridging the gap until break-even and financing growth measures at the same time
1000 Satellites faced a dual challenge: financing the development of new locations while bridging the short-term gap to profitability. "So far, we always relied on a financing mix," explains Markus Hummelsberger, Co-Founder and Managing Director of 1000 Satellites.
Since day one, the Mannheim-based company has employed a diverse capital structure – a strategy they wished to maintain. However, equity was not an option due to the excessive dilution. Traditional debt capital was also off the table due to the limited flexibility in the use of funds. Consequently, the company sought alternative financing solutions.
For Markus and his team, the financing had to fulfill two main objectives:
- Bridge the short-term period until profitability.
- Pre-finance further growth by investing in new locations.
Flexible financing that adapts to 1000 Satellites' goals
As a young and growth-oriented company, 1000 Satellites looked at alternative debt financing – and came across re:cap financing. According to Markus, the decision was driven by several decisive factors:
- High financing flexibility
- Comprehensive financial analyses through re:cap's liquidity management software Insights and re:cap benchmarking
- Customer focus and smooth onboarding
High level of financing flexibility
1000 Satellites secured financing that can be exactly tailored to the company's growth.
"With re:cap, we have the opportunity to adapt our financing to our needs and goals. We remain flexible and can react to new growth opportunities," says Markus.
Analyses with re:cap Insights and Benchmarking
But re:cap doesn't just provide 1000 Satellites with financing. Markus and his team also gain access to re:cap’s analysis and data platform:
"The business insights that I receive on the platform as Finance Lead are extremely valuable. Here, you get to grips with data and the KPIs and analyses that are generated are very insightful for us.”
For 1000 Satellites, re:cap is not just a financier. It is also the platform that provides business analyses and allows the company to compare itself with its competitors.
Customer focus and smooth onboarding
The third important aspect for Markus was the good collaboration with the re:cap team. Markus perceived it as professional, pleasant, and solution-orientated right from the start. He highlights that re:cap quickly understood how their financing product could benefit 1000 Satellites and that the re:cap team asked insightful questions that pushed the Mannheim-based company forward.
"When someone with a skilled eye analyzes a company's financial situation, you learn a lot about your business," Markus summarizes.
Based on this, he and his team have identified areas that they can optimize.
Looking ahead, Markus intends to continue focussing on a mix in his financing strategy in the future. re:cap "will play an important role in this because it adds a flexible component to our capital structure."
