Digital literacy has transformed customer expectations. It has also reshaped the way they purchase products or decide on trying out a new service. In our noisy, overcrowded marketplace, brands that share authentic stories portraying their offerings in a very humane way are the brands that stand out. The Looma Project is one of the leading initiatives in this area that believes in a world where shoppers have access to the story of the person behind the product they purchase. Founded by Cole Johnson in 2015 in North Carolina, the organization aims to craft interactive narratives that amplify the relationship between our planet and the goods produced by people.
Nowadays, sustainability and transparency are key for consumers and lead them to choose brands that follow a similar path. Hence, they are also willing to listen to the stories of the people behind such organizations. This was the reason why The Looma Project created Loop - a wide network of smart tablets that presents the narrative of sustainable brands across various retail and grocery shops.
The company realized that video advertising is changing dramatically in favor of less commercial and more real content. They developed a unique algorithm, Story IQ, which in conjunction with their vast range of analytics tools, enabled them to create the world's most insightful and actionable platform for human-centric point-of-decision video.
Powered by the algorithm, Loop can play short films that drive sales and build loyalty for relevant brands with a humane touch. This results in 2X sales growth for a brand during an ongoing campaign through Loop and 51% increase in space productivity when a brand’s film is played on Loop installed on the end counter/rack in a retail outlet.
With its countrywide filmmaker network made up of creative individuals, The Looma Project is able to handle the whole video production process, from shooting the adverts (referred to as short documentaries), to placing them in grocery shops. The company patented matching technology that helps pair brands with filmmakers based on budget, region, story type, and story IQ compatibility. However, the whole process came at a cost for the Looma Project.
Quality gear is key to their product offering, which requires them to invest more and slows down the company’s expansion. With large commercial clients, these prices can change considerably from month to month, making it impossible to estimate cash accurately.
To solve this challenge, the team started looking for new funding models that would enable them to continue their operations without having these hurdles. That’s when the firm came across Capchase and its financing models. Since then, running the business has been an efficient process for The Looma Project.
Following the completion of many significant corporate agreements, The Looma Project began utilizing Capchase's Expense Financing product, which enabled them to pay their hardware and installation charges over the course of a year instead of suffering a large cash outflow at one time:
“Capchase has been amazing. They engaged with us earlier than a traditional venture bank would, and the setup process was incredibly smooth. We expect Capchase to be a key partner as we scale, enabling us to grow with substantially higher capital efficiency than we otherwise could have."
The benefits of the Capchase model included managing significant payments by distributing them over a period of time while repaying in fixed terms. It also allowed the company to avoid making large outflows, schedule expenses while considering revenues, and tap into new growth opportunities.