SF Advises on Growth Financing for AtoZ Companies

AtoZ Companies, Inc, a high growth, 22-store online retailer leveraging advanced, analytics-based customer acquisition technologies, has closed a significant capital raise led by a Raleigh-based angel group and individuals. SF provided advisory support and has been an investor in AtoZ since 2011.

Lonny Bernath, founder and President of AtoZ Companies, disclosed that an angel group acquired 20% of the company and the option to purchase an additional 12.8% over the next 12 months for an undisclosed amount.

AtoZ Companies, located in Matthews, North Carolina, was founded in May 2010 and launched its first niche website in November of that year. Today, they manage 22 niche sites and are projected to reach $3M in revenue in 2012.

Bernath said that by accepting this investment, AtoZ Companies will have expanded financial resources to grow the company. He plans to use the capital for hiring additional employees, expanding on-line stores, and increasing their marketing and brand efforts.

“We are very excited to have this new partner and investor in AtoZ,” said Mr. Bernath. “Their financial backing will provide the runway we need to grow into a sizable force in e-Commerce. Their talented team will also prove to be a great resource as we continue to expand.”

Online retail is the fastest growing segment of retail sales as more and more consumers have access to the internet and have grown comfortable buying online. With the growth of online retail, there is ample room for AtoZ Companies to grow within this $200 billion e-Commerce space.

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Scale Finance LLC (www.scalefinance.com) provides contract CFO services, Controller solutions, and support in raising capital, or executing M&A transactions, to entrepreneurial companies. The firm specializes in cost-effective financial reporting, budgeting & forecasting, implementing controls, complex modeling, business valuations, and other financial management, and provides strategic help for companies raising growth capital or considering M&A/recapitalization opportunities. Most of the firm’s clients are growing technology, healthcare, business services, consumer, and industrial companies at various stages of development from start-up to tens of millions in annual revenue. Scale Finance LLC has offices in Charlotte, NC, the Triangle, the Triad, Southern Pines, and Wilmington with a team of more than 30 professionals serving more than 100 companies throughout the region.