Toronto-based startup Flixel Photos, maker of the popular Cinemagraph Pro program for Macbook, has raised $460,000 in convertible debenture funding from Cranson Capital, a Toronto-based boutique investment banking firm.
Convertible debenture is a type of loan issued by a company that can be converted into stock by the holder and, under certain circumstances, the issuer of the bond. By adding the convertibility option the issuer pays a lower interest rate on the loan compared to if there was no option to convert.
Last year,Flixel partnered with Tyra Banks, where “living photos” were featured on her hit television show America’s Next Top Model. This strategic partnership created significant awareness and exposure that helped put Flixel on the map. Since then, the company has made significant progress. Flixel is an innovative new photography software which combines still photographs and captivating aspects of video.
In February 2014, Flixel launched Cinemagraph Pro, a professional desktop version of its popular photography software for Mac computers, previously available only for iOS. Within weeks, Flixel achieved featured status on the Mac App Store where it reached No. 1 in the photography category in 78 countries.
It also reported sales of over$250,000 in its first quarter.
“As a team, we had an aggressive goal to become a top player in the photography space, but to have achieved the coveted No. 1 paid App in the Mac App Store in our first month of release was a major milestone for our company,” said CEO Philippe LeBlanc.
Cranson Capital’s Devon Cranson commented that the firm is excited with Flixel’s growth.
“When we were first engaged by the company to provide funding, they were only recognized as a start-up mobile app,” he said. “Flixel continues to hit significant milestones and through strategic partnerships and software development, the company is evolving into a leading player in the photography industry.”