4 min readVenture Debt Non-dilutive capital for venture backed startups in early and growth stages Revenue-Based Financing Funding based on a fixed percentage of gross revenues Equipment Leasing Equipment rental agreement with a lender based on a fee schedule Asset Based Lending Revolving line of credit or term loan secured by collateral Recurring Revenue Lines Line of…
5 min readCo-authored by Ryan McCartney Startups are seeking new sources of debt financing following the collapse of Silicon Valley’s biggest lender. The collapse of Silicon Valley Bank has spurred venture capital-funded growth companies to take a harder look than ever at their cash flows, burn rates, and how much runway they have to profitability. Many of…
3 min readAuthor’s Note Since compiling the data for our Q4 2022 debt market quarterly update, the market has faced unprecedented turmoil led by the collapse of Silicon Valley Bank. In order to provide consistent updates on the debt financing market, we are distributing our Q4 2022 report but also want to provide context on the current…
3 min readWelcome to Capital Advisors Group’s inaugural quarterly newsletter that will provide a snapshot of the current state of the debt financing markets. Capital Advisors Group has been advising innovative venture-backed and growth-stage companies on debt finance transactions for more than 18 years. This newsletter will provide insight into debt markets, specifically as they relate to…
6 min readAfter enjoying years of favorable borrowing conditions, emerging biotechnology growth companies are facing headwinds generated by the current disruption of global financial markets. Inflation is high, interest rates are on the rise and equity markets are sinking. Lenders have shifted to conservatism, setting the bar higher for borrowers who now must adjust to new realities….
5 min readCapital Advisors Group has been advising companies seeking to obtain venture debt for more than 18 years. Among the most common questions we get from new clients are “How much do you think we can borrow?” or, “We would like to borrow X. Do you think that is possible?” Clearly, the amounts companies may be…
1 min readIn this webinar, Stefan Spazek and special guests Bill Wickline, who leads the national life sciences practice for Bridge Bank, and Robert Lake, leader of the national life sciences group at Runway Growth Capital, discuss debt financing for growing companies in the healthcare sector. Watch a recording (10/27/2021) of Capital Advisors Group’s webinar, Healthcare Debt…
5 min readCapital Advisors Group has written extensively in the past about the when and how a company can maximize the utility of venture debt financing, focusing on variables such as the company’s financial profile, its growth and development strategy, and management’s priorities. With this information in hand, Capital Advisors Group can help identify and engage the…
1 min readIn this webinar, Stefan Spazek, along with a panel of lenders review the ups and downs of 2020 while also looking ahead to what the coming year may bring. Watch a recording (12/8/2020) of Capital Advisors Group’s webinar, Venture Debt – A 2020 Retrospective And A Look Ahead. Hosted by Stefan Spazek, EVP – Director…
5 min readThe old adage in corporate debt financing is “The best time to borrow is when you need it the least.” But the concept of timing when it comes to debt financing can take many different forms. This blog post intends to address some of the potential timing issues around debt financing and where and how…