Synergy Capital Markets

In the past half-century, the Food and Beverage industry has emerged as a trillion-dollar powerhouse led by huge international corporations. Familiar names like Coca-Cola, Starbucks and McDonald’s can be found in every corner of the globe. The two themes dominating the Food and Beverage industry is "exploding global demand" and "rapidly rising food prices". A massive influx of consumers onto the global food market has resulted in a rapid and sustained increase in food prices, stoking global inflation.

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The related shift to ethanol and other bio-diesels in the face of rapidly rising energy prices has only exacerbated the world’s food inflation headache. Some members of the food and beverage industry (primarily farmers and agribusinesses) benefit from higher prices. Most of the members have seen their profit margin dwindle as the higher costs are passed onto consumers, who find their discretionary spending restricted when they must spend a larger chunk of their paycheck at restaurants and grocery stores. So, just as oil prices are a key economic indicator, so too are the prices of key agricultural commodities such as corn, wheat and soybeans.

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Synergy Capital Markets looks to partner with disruptive Food and Beverage companies that have the following traits:

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• People First: Synergy Capital Markets partners with founders who hold themselves to the highest standards in their industry. Synergy Capital Markets prioritizes Quality, Infrastructure, and doing things the right way.

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• Disruption: Synergy Capital Markets looks to partner with innovative products and "go-to-market" strategies that push the boundaries of today's Food & Beverage Industry.

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• Market Opportunity: Synergy Capital Markets looks to partner with companies that have the ability to grow to $100 Million USD in sales and beyond.

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Fostering Growth without Diluting Equity:

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For Food & Beverage Industry companies at critical stages of development, debt can serve as a key financing option to foster growth, with minimal dilution of equity ownership. At Synergy Capital Markets, not only do we understand the industries of our portfolio Food & Beverage Industry companies, but we also understand the growth process - and occasionally the growing pains - they undergo.

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When venture debt is used appropriately, we believe entrepreneurs gain the following benefits:

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• Able to raise capital in a way that benefits the team and the business as a result of the greater flexibility offered by venture debt than traditional forms of debt financing

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• Have more time between equity rounds to build the business and achieve critical milestones, which creates potential for greater valuation

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• Retain a larger ownership stake in the company prior to an IPO or other liquidity event

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• Achieving milestones quickly in many cases also means reaching the IPO stage more rapidly

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