5/2/2023 0 Comments Venture debt![]() Warrants strike price is set at underwriting and is usually linked to the most recent priced round in the shares of the company.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.Usually expressed as a percentage of the Loan notional amount. An option for the lender to buy shares in the company at the time of a liquidity event at a predetermined price.The interest rate of the loan varies based on the individual company.Loan structure can be adjusted through tranching and early repayment options.Monthly payments include interest payment and amortisation of principal (similar to a mortgage).A three year term loan repaid on a monthly basis.Venture Debt consists of two components: the Loan and the Warrant. Either in the process of a financing round or recently raised a round.Solid business model with proven economics. ![]() Strong revenue traction of EUR300k+ MRR and growing.A strong founding team supported by reputable venture capital investors.Flexible on Board observer roles, advisable to enable our value-add.through a syndicate with reputable international venture debt lenders that we can bring. Loan facility amount of EUR2-5m, which may be increased further.We can finance software, software enabled and hardware companies.The sweet spot is business-to-business software-as-a-service solutions, however, we also finance compelling business-to-consumer applications.Focus on Series B+ stage companies, however could consider slightly earlier stage.With this relatively new product for companies originating from Emerging Europe and Israel we aim to complement venture capital financing to foster further growth.
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