Funding to fuel sales, product development, and marketing as additional capital unleashes growth opportunities
Red Violet, Inc., a leading analytics and information solutions provider, announced the closing of $7.5 million in growth financing from existing and new investors through the sale of 681,000 shares of common stock in a registered direct offering. The funding underscores the faith in red violet, its team and its current strong growth trajectory. The Company intends to use the proceeds to accelerate market expansion through new investment in sales, product development and marketing, as well as for working capital and other general corporate purposes. The Company has no intention of accessing any additional funds under the Company’s registration statement.
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“While we had sufficient capital on our balance sheet to achieve positive free cash flow, we are pleased to announce that we have raised the requisite growth capital to accelerate our business. As evidenced in our recent quarterly results, we have tremendous demand for our products and are constrained in resources to not only meet demand but to avail ourselves of the various other strategic opportunities before us,” commented Derek Dubner, red violet’s CEO. “Investment in specific areas of the Company will accommodate increasing demand in the near term and will lay the foundation for the acceleration of our business, including investment in sales, our technology team, and marketing personnel. While we have grown revenues approximately 80% in the first half of 2019 and expect that growth to continue throughout the remainder of the year, we believe that deploying this capital will position us to accelerate our growth rate in 2020 to greater than 100%. Notwithstanding the deployment of this growth capital, we expect to achieve positive free cash flow in the first quarter of 2020.”
