BDC Capital Invests $2 million in Nix Sensor to propel the Hamilton start-up’s expansion
Hamilton’s start-up community is seeing an investment in innovation with the recent funding of 2 million dollars in non-dilutive financing to Nix Sensor from BDC Capital’s Growth & Transition Capital division. A modern-day alternative to fan decks and swatch books, Nix Sensor has improved the art of colour identification, and can be found in paint stores and design studios as well as in manufacturing plants and research facilities. The funding will be used by Nix Sensor to accelerate product development and expand global sales efforts.
“BDC Capital’s investment has come at an ideal time,” explains Nix Sensor founder, Matt Sheridan. “Our team has realized a gap in the paint industry and are on the cusp of launching a new platform that will not only fill it, but radically change the way consumers move through the paint-purchasing process.”
BDC Capital’s financing takes the form of a custom-built patient mezzanine loan with a low interest rate which is balanced out by a warrant structure allowing for additional returns based on the value of the company at term. This formula responds to the needs of the company which wanted to maximize its cash flow and its flexibility in order to sustain the pace of its development.
This transaction was conducted by Mark Lunick, Director, Growth & Transition Capital for Southwestern Ontario at BDC Capital. “At the head of Nix Sensor, Matt Sheridan has demonstrated entrepreneurial creativity, fortitude and vision beyond his years and experience in first creating and then marketing his innovative solution,” remarks Lunick. “Recognizing that the paint industry was ripe for technological innovation, Matthew and his team have developed a very strong value proposition for paint stores, contractors and manufacturers. It makes sense to us that this should lead to widespread adoption of Nix’s products in that sector.”
Nix Sensor’s suite of products provide adaptable and accurate colour identification. With a simple scan of any surface or substance, users can confidently match more than 100,000 colours in the application’s library, discover colour harmonies, save colours by project or room, incorporate digital colour values into their projects, and more. With the additional funding from BDC Capital, Nix will be able to continue to invest in its SaaS-based offering, and expand its relationships with paint manufacturers and retailers, who represent the company’s priority market.