Typical Transaction Parameters
Specialization: Equipment financing for US-based emerging growth and venture capital-backed startup companies. The majority of the companies we finance have completed one or more venture capital rounds exceeding $5 million in total with major VC sponsors, have introduced their products or services and can demonstrate revenue traction. Many customers we serve are approaching, but are not yet cash-flow positive.
Types: Equipment leases and loans
Amounts: $750,000 and over; amounts over $3 million are occasionally syndicated with syndication partners
Terms: 24 to 48 months, depending on the underlying assets and customer credit profile; average term is 36 months
Warrants: Usually not required.
Drawdowns: transactions can be staged or drawn down in increments of $100,000 or more under a master financing agreement
Client industries: we are generalists, but prefer software, medical technology, IT services, telecommunications, Internet, clean technology, and other technology markets.
Credit Profile: VC-backed startup companies
A-stage VC round and beyond
Startups already generating revenues; however, select pre-revenue companies are acceptable
Startups that have at least 6 – 12 months of operating cash on hand
Headquarters and assets located in US
In business for at least 2 years
Strong management teams and VC sponsorship
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