Why Venture Debt
Venture debt is a financial tool used by equity investors and entrepreneurs to maximize enterprise valuation. They do so by exploring appropriate amounts of leverage intended to accelerate the growth of their businesses through financing the essential working capital needs, business essential assets, or simply to extend the runway between rounds.
Venture debt has long been criticized as not being appropriate for all companies at all stages. It’s true that there is no one-size-fits-all methodology for building and funding disruptive technology, so let your business and our analysis work together to explore what makes the most sense.
What we do differently
Starting companies can be quite expensive. Deciding to invest further or tighten your spending can have dire consequences.
It can take much longer than anticipated for new technology to become validated and profitable, and raising rounds of financing at less than optimal times or engaging in more rounds than necessary can incur significant costs to the ownership interests of the founders and early investors.
Venture lending acts as a financial tool to aid in growth-oriented businesses. One of modest leverage to help ensure the appropriate balance is struck to maximize enterprise value creation by providing the necessary capital to invest in businesses and ensure growth, critical milestones, and access to capital are achieved.
Our version of venture lending is one based on personal relationships and is focused on growing companies, not on engineering financial returns. We take the time to meet, learn from, and understand the opportunities and challenges faced when disruptive businesses are being born. It is not uncommon for us to spend countless hours getting to know early-stage companies as we seek to demonstrate our enthusiasm in working with you and helping your company grow with our capital.
Our interest rates might appear high, but given the true cost of capital and having the ability to use our funds, it is comparably much cheaper than the alternative of equity. We urge you to explore your options at any time and begin forming relationships that will become the backbone of our efforts.