Venture debt US
Hey guys,
I’m CEO of a profitable cash generating tech startup (5m rev for 2m EBITDA). We are looking to raise 6m in debt. I have no prior experience in a debt raising, I was wondering where I could find a mapping of all the Venture debt funds (or anybody body else willing to give us a loan) that operate in the US?
Thanks a lot for your help!
You might have to go through bankers for this process if you want legitimate funding partners
Thanks! Yes that is an option but will probably work out at quite an expensive % of the deal for this size.
Work at an fund that invests across the cap structure.
Do you have any existing debt on the balance sheet? Will influence who the right partner is at your size
Hey,
In essence, no, we will just have the loan (and a couple of SAFE).
Thanks for your help!
Off top of my mind, you should talk to Silicon Valley Bank, Hercules Capital, and the like.
Seconded
Thanks a lot, didn’t think about Hercules!
pm me: I can connect you with Hercules
SBV.
The nice thing about SVB is that they are very reliable and consistent with their underwriting, no rug pulls...
Downside is higher pricing.
You will probably have trouble raising that much debt atm for a small company.~$2m - $3m is more realistic.
Thanks, always really helpful to know how they act!
I think bridgebank, triplepoint may be options as well. Although may be to small for triplepoint.
I assume you’re looking for debt as an alternative solution to a dilutive equity raise?
Thanks for the help!
It’s not the most classic deal structure, essentially buying out the original founders, with the goal of a quick turnaround and exit.
Blackstone (GSO) does venture debt out of San Francisco as well.
Didn’t know, thanks a lot!
Are you a SaaS-based tech company? If so, it’ll be infinitely easier to secure debt.
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