How Cybersecurity Company Cylera Improved It's Capital Efficiency with Gynger

September 14, 2023
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“Gynger enabled Cylera to grow globally in a streamlined way, helping us attain more clients while maximizing our resource capacity. Thanks to our partnership with Gynger, we achieved our goals, optimizing our resources while creating a better experience for our customers.” - Timur Ozekcin, Co-Founder & CEO of Cylera

Cylera is an IoT cybersecurity and intelligence company built in close partnership with healthcare providers. They provide a readily deployable network-based solution to manage assets, identify risks, and risk reduction capabilities and strategies. Cylera’s solution enables healthcare organizations to secure and effectively manage their mission-critical assets, including their biomedical and IoT devices.

The challenge: A cash flow crunch caused by upfront onboarding costs and a delayed payback period

Due to changing demands as they grew to scale, Cylera needed to balance high customer acquisition costs that were concentrated within a short time frame. Although the company was steadily expanding their client base, their business model required a large upfront cloud spend to onboard each new customer. 

A delayed initial payback period from their customers, combined with this large upfront spend, meant that scaling led to a  cash flow crunch, especially in the first few months while onboarding each customer. 

These heavy upfront costs, including onboarding expenses and costs associated with standing up additional infrastructure to support new data centers, were a top-of-mind concern for Cylera as they rapidly expanded their business.

Cylera needed a smarter financing solution that could soften the blow of major upfront costs within a short time frame, while providing them flexibility to free up funds to continue growing to scale in a critical growth period for their business. 

Gynger’s solution: Flexible financing to optimize resources and stagger costs in critical growth periods

“Gynger was recommended to us by our partners at Google Cloud. We were immediately impressed by Gynger’s straightforward, efficient process,” says Timur Ozekcin, Co-Founder and CEO of Cylera.

Cylera applied for financing, was fully underwritten, and approved — all in one day.

Gynger provided Cylera with a Term Loan customized to their needs. This loan is unsecured, sits subordinate to all other debt, with no personal guarantees, no warrants, no usage requirements, and no application fees.

Over the next few months, Cylera financed several additional monthly GCP usage bills. Gynger paid each invoice on their behalf, and Cylera chose to pay back the funds in monthly installments. This bridge financing provided Cylera with the ability to charge full speed ahead into their expansion, without having to slow growth or cut costs in other areas.

“Cylera has thoroughly enjoyed working with the Gynger team in strengthening our growth capabilities,” says Timur. “As a cybersecurity company, we know timing is everything, and Gynger’s innovative approach to financing solutions has enabled our team to focus on providing the best solutions to our clients.” 

Moving forward, Cylera will utilize Gynger’s Deferred Billing Product. Each month, Gynger will pay Cylera’s GCP usage bills, and Cylera will pay back the total amount billed at the end of the Quarter. 

This allows Cylera to preserve the cash they need to grow by paying Quarterly, rather than monthly, to align expenses with their customers payment terms Deferred Billing is now a key financial tool within Cylera’s plan to continue scaling their business.

To learn more about how Gynger’s flexible financing can benefit you, get in touch with our team today.

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