Enterprise smart lock maker Sera4 of Waterloo secures $1.5M financing from BDC Capital
KITCHENER and WATERLOO, November 4, 2019—Sera4 of Waterloo, Ontario has secured non-dilutive growth financing totalling 1.5 million dollars from BDC Capital’s Growth & Transition Capital division. Sera4 makes enterprise-grade locks that are opened wirelessly with authorized users’ smartphones. Its technology affords greater security and efficiency as there are no physical keys in circulation and no anonymous access.
Sera4 was founded in 2014 by Jerod Klink, a former software engineer at BlackBerry. He was joined two years later by David Coode, a senior manager at ON Semiconductor, who took on the role of CEO. Sera4 has enjoyed early success with substantial sales to telecommunications service providers and tower operators in Mexico. It is now expanding in North America and elsewhere in the world as well as penetrating other industries with critical installations requiring access control.
BDC Capital’s financing takes the form of a mezzanine loan with a patient five-year term and flexible debt servicing requirements tailored to the needs of Sera4 which leave more of the company’s cash flow intact to invest in growth opportunities. The company will use the funds for inventory, product development, sales and marketing as part of its strategy to further grow and diversify its client base.
“BDC Capital’s financial support is an integral part of our overall growth plan at Sera4,” says CEO David Coode. “The financial products and advice from BDC fit perfectly with our needs at this stage, and dealing with BDC Capital has been a pleasure.”
This transaction was conducted by Mark Lunick, Director, Growth & Transition Capital for Southwestern Ontario at BDC Capital. “Sera4 has solved a big problem for companies that need to give controlled access to their critical infrastructure,” comments Lunick. “The market for Sera4’s technology is considerable. The go-to-market strategy that management is now deploying is very well thought out and includes a deep pipeline of potential customers.”
Sera4 Ltd. is a leading supplier of keyless physical access control for critical infrastructure. It provides cyber-resilient site access automation and identification at scale, solving real challenges in operations while reducing significant asset losses. Sera4 solutions currently secure customers throughout the Americas and in Africa. Sera4 is headquartered in Waterloo, Ontario.
About BDC Capital
BDC Capital is the investment arm of BDC, the bank for Canadian entrepreneurs. With over $3 billion under management, BDC Capital serves as a strategic partner to the country’s most innovative firms. It offers businesses a full spectrum of capital, from seed investments to growth equity, supporting Canadian entrepreneurs who have the ambition to stand out on the world stage. Visit bdc.ca/capital.