With this relatively new product we aim to complement venture capital financing to foster further growth for VC-backed start-ups.
- We focus on VC-sponsored companies with at least $3m in annualised revenue and demonstrated product-market fit.
- We finance software and software enabled companies across a range of sectors.
- We support our companies over time with additional loans and follow-ons available as the companies grow.
- Loan facilities from as little as €2m up to €15m, which may be increased further through syndication with reputable international growth debt lenders or co-investors.
- We also actively support our companies with their fundraising efforts through our extensive network.
- Reputable and supportive VC sponsors
- A strong founding team
- Demonstrated product-market fit, with at least €3m annual run-rate revenue and year on year growth of 30%+
- Solid business model with strong unit economics
- At least 12 months’ cash runway
Growth Debt Product Structure
Growth Debt consists of two components: the Loan and the Warrant.
- The Loan:
- A three- or four-year term loan repaid on a monthly basis
- Monthly payments include interest payment and amortisation of principal (similar to a mortgage)
- Loan structure can be adjusted through tranching, interest-only periods and early repayment options
- The interest rate of the loan varies based on the individual company
- The Warrant:
- A call option over shares in the borrower at today’s price, typically expressed as a % of the loan provided
- Allows the lender to align interests with the company – to grow and provide additional compensation for taking on higher risks than traditional lenders are prepared to take.
Growth Debt use cases
- Increase efficiency of equity financing through decreasing dilution to founders and other existing shareholders
- “Insurance Policy” to secure additional runway until the next value-creation milestone
- Alternative to a convertible loan
- Bridge to profitability
- Bridge to an exit
Read more about the benefits of Growth Debt in the articles below
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