Designing One's Way to Success

The Situation

Providence-based Item Group, a leading product design and development firm that was preparing to obtain permanent equity capital to support ambitious development plans, needed short-term funding to sustain its rapid growth in the meantime.

The BDCRI assisted by providing gap financing in the form of subordinated debt, which serves as an interim bridge loan.

About the Opportunity

Item Co-founder and CEO Stephen Lane has created one of the fastest growing companies in Rhode Island, an organization that today employs more than 100 people in high-paying jobs.

During the last two years, Item’s revenues grew at an annual rate of more than 50% due, in part, to a reorganization that changed the company from a business with three internally managed divisions to a holding group with three stand-alone entities.

In addition to its legacy business, dating to the company’s founding 20 years ago, which provides research and design services for consumer and industrial products, Item Group operates two other companies focused on new business opportunities: Ximedica, serving the medical market, and Innovation Chain Partners, focused on developing consumer and commercial products for national retailers.

Why the BDCRI Got Involved

The BDCRI decided to provide a $500,000 bridge-gap financing package to Item Group because:

1. Stephen Lane has fielded a world-class, highly disciplined management team and staff which can execute a plan successfully.

2. The company’s business model has been validated in the market.

3. Company revenues have grown through development of solid customer relationships— which means sales are driven by customers, not general market trends.