Founder friendly capital Minimize dilution; additional runway; higher valuation; reduced overheads

Who we are

We lend to growing venture capital backed companies at various stages of development across technology (consumer, software & hardware), Life Sciences, Energy and offline domains. With strong network in the startup ecosystem and decades of debt and equity investing experience, we are uniquely positioned to design innovative financing solutions that perfectly fit a company’s existing capital structure and map to its business objectives. Our Venture debt products provide a valuable tool to the equity investor to fund the growth of its portfolio companies, while maximizing returns on its equity.

Having an existing equity fund, we are in unique position to understand the challenges growing companies face. In addition to financing the businesses, we are committed to work with them closely especially through challenging times and help them reach key milestones. Our portfolio companies can leverage our investing team’s extensive operating, investing and entrepreneurial experience coupled with the industry and domain expertise from our network of mentors and advisors.

What interests us

We look to invest in and partner with high growth potential technology and technology-backed businesses with following attributes:

Experienced Management teams with good reputation, track record and
understanding of fiduciary duties
Companies backed by well-known Venture Capital or Private Equity sponsors
Sufficient Operational cashflows to service debt
Positive Unit economics with revenues in sight to service the debt
Burn rate justifying the use of debt
Collateral as Cash flow, Accounts Receivables, IP, Assets

When we partner

We generally partner with a growing company once it has checked the following boxes:

Reputed Equity investors: The company is backed by syndicate of well-known VC/ PE firms.

Follow-on commitments: Existing (or new) sponsor is on-board for follow-on commitments and would invest concurrently with a new outside lead investor.

Vision on exit: The founders and equity investors have vision on exit through IPO/M&A/secondary sale with superior returns.

Our focus areas

Our focus is tech and non-tech companies across Consumer, Software, Life Sciences, Energy, Hardware and Offline domains

How we invest and operate

  • We typically make 8-10 investments each year and only ask for board observer position. To ensure companies don’t spend valuable time and energy when venture debt is not the right solution, we follow a selective origination and rigorous underwriting process. Our goal is not closing the deal but providing a successful financing solution that will propel out clients forward.
  • For each investment opportunity, we carefully evaluate the company’s management team, investors, equity history, technology value, intellectual property and other critical factors. We strive to make this process as user-friendly as possible, because we believe an entrepreneur’s time is better spent building the business than raising funds. This typically means that, upon signing a term sheet, we are able to complete a transaction and provide capital within four to six weeks.

Why Venture Debt?

Venture debt emerged more than 30 years ago (1980s) in the US and more than 20 years ago (1990s) in Europe. Annual market for Venture Debt is estimated to be more than $3bn in the US and greater than $1bn in Europe. Venture debt has helped build some great companies globally by:

Minimizing dilution
Venture debt is significantly cheaper than equity as it minimizes dilution and allows founders to keep higher share of their company.
Providing additional runway
It provides additional runway to cover cash needs of growing businesses, giving them more time to reach key milestones. Companies can also leverage this buffer to adapt and pivot themselves.
Increasing Valuation
This sets them up for higher valuation with less dilution in next equity round.
Reducing overheads
Venture debt providers are less involved than typical VCs in management and typically only provide strategic advice thereby reducing administrative overheads.

Notable examples of companies employing Venture Debt include Facebook, YouTube, Ancestry. com, Kayak, Cooking.com, MySpace, Athena Health in US and LOVEFiLM, Last.fm, SoundCloud, Codemasters in Europe.

Our Solutions

Growth Capital Financing
  • Short-term bridge financing to reach next milestones or additional milestones
  • Accounts receivable and Cash flow based facilities
  • Working capital revolving lines of credit
  • Domestic and international corporate expansion
  • Management buy-outs and corporate spinout financing
  • Revenue acceleration (sales and marketing development, manufacturing expansion, etc.)
  • Inventory acquisition
  • Vendor financing
  • Other growth capital financings
IPO, M&A and Public Company Financing
  • Bridge financing to IPO or M&A or technology acquisition
  • Cash flow financing to protect against share price volatility
  • Competitor acquisition
  • Dividend recapitalizations and other sources of investor liquidity
  • Pre-IPO financing for extra cash on the balance sheet
  • Public company financing to continue asset growth and production capacity
  • Strategic and intellectual property acquisition financings
Asset-Based Financing
  • Company, asset, or intellectual property acquisition financing
  • Equipment acquisition
  • Equipment loans or leases
  • Facilities build-out and/or expansion (lab, manufacturing capacity, etc.)
  • Other asset-based financings
Other Types of Financing Solutions
  • Seed and early-stage financing to help launch new companies
  • Other customized financing solutions