Debt
Loan modality designed especially for high-growth companies
For Entrepreneurs
Extend runaway, no dilution
- Fuel growth while preserving ownership, control, and valuation
- Enable companies to increase their operational cash balance
- Alternative for companies unable to raise equity rounds due to milestone gaps or conservative market conditions
For Investors
Lower risk and potential upside
- Opportunity to diversify their portfolio beyond traditional equity investments
- Reduced risk through a more secure position in the capital structure, often followed by collateral or asset-backed guarantees
- Appealing returns through interest payments and potential upside from equity kicker
Market context
Debt emerged as a significant financing alternative for tech companies
Tech market and changes
- >Shift in the behavior and consumption patterns of both individuals and businesses
- >The demand for digital transformation has boosted the tech environment
Demand for financing
- >High demand for funding at a lower cost than equity; limited alternative debt supply available
- >Managers lacking tech knowledge provide credit solutions for startups by neglecting optimal choices
- >Rigid investment structures are still proposed by VC managers
Alignment of strategies
- >Venture debt as an important financing structure given its lower cost, linked to reduced dilution
- >Need for a manager with market expertise that structures tailor-made products
Why Growth Debt?
Increase the runway and postpone the next round of equity
02 /Financing acquisitions and mergers
03 /Security and flexibility against unforeseen events and low performance
04 /Leverage equity rounds, decreasing dilution
05 /Captable restructuring or cash-out
06 /Financing growth with returns on short to medium term