Company: CAN Capital, New York, NY
Entry Submitted By: Prosek Partners
Company Description: CAN Capital, Inc., established in 1998, is the pioneer and market share leader in alternative small business finance, having provided access to over $4.5 billion in capital for tens of thousands of small businesses in a wide range of locations and different business types.
Nomination Category: Management Categories
Nomination Sub Category: Executive of the Year - Financial Services

Nomination Title: Daniel DeMeo, CEO

Tell the story about what this nominated executive has achieved since January 1, 2014 (up to 650 words). Describe the impact he or she has had on your organization. Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms.

Daniel DeMeo, CEO of CAN Capital, oversaw a year of strong growth and profitability in 2014. As the market share leader in alternative small business finance, CAN Capital experienced a 27 percent year-over-year increase in revenue in 2014, along with a 600% percent increase in digital business growth. CAN Capital is the longest running company in the space with more than 17 years of experience and continues to be one of the few alternative finance companies to turn a profit year after year. This is because CAN Capital’s strategy is to work towards growth and profitability, rather than concentrating on only one.

In 2014, CAN Capital reached the significant milestone of providing small businesses with access to $4 billion of working capital since its inception, more than any other company in the space. By the end of 2014, the company surpassed $4.7 billion and is on track to reach the $5 billion mark in 2015.

Much of CAN Capital’s success stems from DeMeo’s focus on expanding its digital capabilities and turning the company into a technology leader. These investments have allowed the company to better serve its customers by providing them with increased automation and speed.

In 2014, CAN Capital created a fully-operational, customer-facing website that could directly take applications, giving small business owners the ability to apply for pre-qualification for working capital online in less than 15 minutes. Under DeMeo’s leadership, the site was built in just 60 days, as he quickly realized how critical the site would be to reach new audiences and maintain CAN Capital’s lead in a shifting marketplace.

The creation of a fully digital application paved the way for the launch of CAN Connect™, a suite of APIs that enables third-party providers, such as payment processors and providers of point of sale (POS) systems and cloud accounting software, to offer their small business customers access to working capital from CAN Capital based on merchant data that they already have from the small business owners they serve.

By providing a suite of standardized APIs to which sales partners can connect easily, CAN Connect™ presents a “plug and play” business development opportunity that is expected to significantly increase the velocity with which CAN Capital signs up new sales partners and provides their merchants with access to capital. To date, CAN Connect™ has secured a number of sales partners, including Fundera, Yodlee, Worldpay and Reliant Funding.

To support these efforts, DeMeo has overseen a tremendous influx in technology talent, moving the company from the New York suburbs to the city’s Silicon Alley to better attract top employees.

CAN Capital continued to demonstrate its financial strength in 2014, closing an investment round in January and its first securitization transaction in October. CAN Capital secured $33 million in funding from investing groups, including Meritech Capital Partners, Accel Partners and Ribbit Capital, using half of the money raised to buy back shares from existing investors. CAN Capital also has access to a $460 million line of credit through a syndicate of leading banks, including Wells Fargo Capital Finance LLC.

CAN Capital closed its first capital markets asset-backed notes offering with a $200 million securitization transaction. The company sold $191 million of fixed rate notes, $171 million of which are A rated notes by Standard & Poor’s and DBRS, and $20 million of which are BBB (low) and BBB- rated notes also by Standard & Poor’s and DBRS, respectively.

Obtaining an investment grade rating on this transaction from both S&P and DBRS is a testament to CAN Capital’s business model under DeMeo, which maintains a disciplined approach and continued emphasis on technology and customers. With these funds, CAN Capital continued to invest in innovative technology and offerings to fuel its growth and continue its track record of profitability, both of which remain a top priority for DeMeo.

In bullet-list form, briefly summarize up to ten (10) of the chief accomplishments of this nominated executive since the beginning of 2014.

• CAN Capital experienced a 27 percent year over year increase in revenue under DeMeo’s leadership.
• CAN Capital experienced 600% percent digital growth in 2014.
• CAN Capital was named to the Inc. 5000 list of fastest growing companies in America with a three-year growth rate of 91% and also named as one of Crain’s New York’s Top 150 Privately Owned Companies.
• CAN Capital secured $33 million in funding.
• CAN Capital created a fully-operational customer-facing website that could directly take applications, giving small business owners the ability to apply for pre-qualification for working capital online in less than 15 minutes without having to speak to a representative.
• CAN Capital launched CAN Connect™, a full suite of APIs that enables third-party providers, to offer their small business customers access to working capital based on available merchant data.
• CAN Capital announced the completion of $200 million securitization transaction to further its growth strategies