Services and fees tailored to meet your specific needs
All transactions led by senior banker with 30+ years of experience
Excellent supplement to efforts by CEO/CFO and board members
Solely focused on raising debt capital Lacks full range of products and services offered by investment banking firms
Do-it-yourself (DIY) approach
Free, hands-on approach
Management directly responsible for executing all aspects of time-consuming process: - Research venture debt landscape - Select best fit loan types and lenders - Reach out with cold emails/calls - Solicit term sheets - Structure transaction - Negotiate and close transaction
Distracts management from core focus and highest value-add, which is building the business - This is the hidden cost of DIY
Process is often constrained by the existing knowledge and relationships of management and board members
Result could be adequate but unlikely to be optimal
Hire full-service investment bank
Full-service, turnkey solution
Resources to execute large, complex transactions
Most firms lack in-depth knowledge of venture debt market
Strong preference for transactions above $20 million
Smaller transactions are often assigned to the "B team" or "C team"
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Utilizing Debt in Your Corporate Finance Strategy
Venture debt lenders provide non-dilutive funding and minimally dilutive funding for technology and growth companies, which can help you achieve many financing goals:
- Extend your cash runway; - Accelerate growth; - Minimize equity dilution; - Maintain control of your business; and - Lower your weighted average cost of capital (WACC).
Our goal is to help you better understand this important source of non-dilutive growth capital. Lenders, investment bankers, attorneys, venture capitalists, journalists and others have written extensively about venture debt. However, few have described it in the context of the overall debt market.
Financing innovations such as the MRR line of credit (based on monthly recurring revenue) and revenue-based financing have broadened the pool of qualified borrowers. In addition, the entry of business development companies (BDC), hedge funds, and other institutional investors into the market have increased the pool of available capital.
This expansion has been so broad that the term "venture debt" and its common definitions are too narrow. As a result, some industry participants and observers have replaced it with the term "growth debt."
We agree that "growth debt" has become more appropriate as the market has evolved. However, we continue to use "venture debt" as an umbrella term since it's more commonly recognized by both lenders and borrowers.
In addition to placing venture lending within a broader context, we are developing a broad array of use case examples to help you quickly and easily determine the types of loans and lenders that are the "best fit" for your unique situation.