Vivi: Unlocking value through international expansion

Vivi is a Melbourne-based tech company that provides wireless screen mirroring and digital signage solutions for the modern classroom. Their technology is used in over 40,000 classrooms globally and drives improved learning experiences, increased student engagement, and a reduction in IT help desk support tickets.

Here’s how they were able to grow their market share by funding international market expansion with the help of Riverside Acceleration Capital’s non-dilutive capital and hands-on guidance.

Expanding into the United States

We first met Vivi in 2019 after an introduction made by Riverside’s Australian office. At the time, Vivi was exploring their options around a potential private equity buyout but realized that they were still a little early and could benefit from being able to prove additional scale and the ability to expand their proven business model into new markets – namely, the US.

It was clear from the first conversation that we could provide not only the funding needed to finance this expansion, but also the support, expertise, and partnership needed to navigate the US market.

We invested $1 million^[1] in non-dilutive, revenue-based financing^[2], which enabled Vivi to expand their US-based team without diluting their ownership stake ahead of a potential future exit.

Over the next year, our team of Growth Advisors^[3] worked closely with Vivi’s team to design and execute on an expansion strategy. Without taking control or a seat on the board, we were able to tap into decades of B2B SaaS operating experience to offer key insights on everything from structuring a US-based sales team to adapting pricing to a new market.

They've since established a strong foothold in the US education market and dramatically grown their US-based office. More recently, Vivi went on to raise a $20M Series A and set a target to be in a million classrooms by the end of 2026

Funding for the ‘inflection points’

Across our portfolio, market expansion is one of the most common uses for our funding. Whether it’s to launch into new geographies like Vivi or to move upstream like Consensus^[4], many of our portfolio companies are looking for financing to accelerate through ‘inflection points.’ These points often require a ramp-up period for testing, launching, and growing into new markets but have the potential to make a significant impact on a company’s bottom line down the road.

Revenue-based financing enables companies to resource these growth opportunities without drawing funds from core business activities and without triggering a new valuation event before the new expansion strategy is proven.

Additionally, RBF reduces the pressure of immediate returns that often come with venture capital and provides the downside protection to cover the time it takes to start generating revenue from a new market opportunity. Repayments ebb and flow with monthly revenue, meaning it’s closely aligned to the natural business cycle and frees up more of a company’s cash flows for reinvestment in growth initiatives during these inflection points.

Then, once an entrepreneur has passed the inflection and proven this new strategy, they tend to be a much better fit for an acquisition or larger venture capital round – and can go into a negotiation with much better metrics.

If you’d like to learn more about Riverside Acceleration Capital and revenue-based financing, reach out to us using the form below.

About Riverside Acceleration Capital

Riverside Acceleration Capital (RAC) provides flexible growth capital to expansion-stage B2B software and technology companies, through an investment structure that maximizes alignment while minimizing dilution. RAC is part of The Riverside Company, a global private equity firm focused on investing in growing businesses valued at up to $400 million. Since its founding in 1988, Riverside has made more than 650 investments. The firm's international private equity and structured capital portfolios include more than 100 companies.

About Vivi

Vivi is the only wireless screen mirroring and digital signage tool designed for education. Vivi helps IT help teachers help students with classroom technology that enhances collaboration, control, and creativity. Engineered by educators, Vivi is designed to be an agnostic visual learning and content delivery solution that makes teachers more efficient and students more engaged. Vivi is used in over 40,000 classrooms around the world. For more information visit vivi.io.

Case study should not be relied upon for investment decision making and should not be considered an offer or solicitation of securities or investment services. For informational purposes only and intended for General Partners or Management teams considering partnering with The Riverside Company. Portfolio company selected based on non-performance criteria

[1] Vivi Partners with Riverside Acceleration Capital in Latest Round of Funding via businesswire.com

[2] A Primer on Revenue-Based Financing via riverside.ac

[3] Interview with Jonathan Temple, Operating Partner at Riverside Acceleration Capital via riverside.ac

[4] Consensus: Moving upmarket with the help of revenue-based financing via riverside.ac