2 min readFor early-stage companies seeking debt financing, the most obvious questions are often the most difficult to answer. When is the most appropriate time to pursue debt financing? Why should you consider debt at all? And how much should you borrow? At Capital Advisors Group, we’ve advised hundreds of companies on billions of dollars of debt…
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?…
1 min readIn recent years, privately held startups seeking faster growth have increasingly looked beyond their initial equity investments to venture debt financing. Venture debt tends to be less dilutive than equity, and it’s become more available over time: venture banks, specialty finance companies and an ever-expanding roster of non-bank debt funds now are lending across the…
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…
2 min readSometimes the best leverage in a negotiation comes from your ability to walk away from the table if necessary. Life sciences companies, however, often find themselves in exactly the opposite position. With long, uncertain development cycles and expensive, time-consuming regulatory approval processes, they burn through huge amounts of capital at a breakneck pace. Too often,…
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,…
2 min readFinancing growth through debt has long been a staple of modern corporate economics, especially for early-stage ventures and emerging growth companies. But intense competition among lenders in the past decade has changed the rules of the game. What was once a straightforward business consisting of fixed-rate loans backed by hard assets now features an array…
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…