Debt

Loan modality designed especially for high-growth companies

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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

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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
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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
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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?

01 /

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