11 min readDOWNLOAD FULL REPORT Abstract Having advised hundreds of companies on billions of dollars of debt transactions over the past 16 years, Capital Advisors Group has encountered many common misunderstandings about early-stage debt financing. To address possible misperceptions at the outset, we always ask would-be borrowers three important questions: When are you considering pursuing debt financing?…
9 min readIntroduction With relatively abundant availability of private financing, many companies today are choosing to remain private. And in recent years, privately held start-ups and growth stage companies seeking financing have increasingly looked to venture debt and other early-stage debt structures as extensions of their equity investments. Such funding, which tends to be less dilutive than…
1 min readChallenge Capital Advisors Group (“CAG”), was engaged by a late clinical stage biotech firm (the “company”) with a strong investor syndicate that was seeking debt financing to supplement a recent equity raise and bridge through a projected potential acquisition date. The option to acquire the biotech firm was part of an exclusive R&D collaboration with…
5 min readFinancing projects and growth through debt has long been a staple of modern corporate economics. However, debt for companies with little credit history, a relative lack of fungible assets, negative cash flow and little to no revenue for the foreseeable future have historically presented an untenable risk for many traditional banks. Fortunately for these organizations,…
4 min readExecutive Summary This paper provides an update, in broad terms, on the state of the debt financing markets. Capital Advisors Group works with companies across industries that are early stage or, for other reasons, may not qualify for large commercial bank debt financing facilities. In this semi-annual review of the market, we will discuss how…
3 min readVenture debt has long been a useful tool for early-stage companies seeking more cash without the share dilution that comes from another visit to equity markets. But what happens to companies that have already negotiated healthy debt packages—especially at a time when venture capital investing has slowed, and when tapping the nearly dormant IPO market…
2 min readCFOs of emerging growth companies have always faced unique challenges in managing their corporate cash accounts as they juggle multiple rounds of financing, unpredictable burn rates and uncertainty about when products in development will turn into revenue. But in 2016, rising interest rates combined with recent regulatory reforms will make the cash management equation even…