Non-dilutive financing is a powerful way to finance the growth of your startup without sacrificing ownership or control. Not only that, this form of capital does not require a growth-at-all-costs mindset.
At Duration Growth Advisors, we work with our clients to prepare and execute a debt fundraise whilst getting the company ready for its next leg of growth.
Before going to market, it’s important that the business has the attributes required to successfully collect one or multiple term sheets. Our team will interview the founder(s) and finance leader as well as review financial and operational data to ensure the metrics can attract lender interest. With over 100 deals completed across $300 million in venture debt, revenue-based financing, and warehouse facilities, we have the experience required to bring you feedback you can be confident with.
A successful debt fundraise begins with preparing materials that build confidence with the lender. This means clean customer data, separation of recurring and non-recurring revenues and COGS, departmental expense allocation, a deck that articulates a clear story for the past, present, and future of the business that matches the financial forecasting being presented, etc. Our team will ensure your materials do the heavy lifting.
Once we’ve done the work, it’s time for us to tap the network. The work product will give us a baseline on all the metrics and the risk being taken in the forecast prepared. Based on this, we will handpick the funds and banks we feel have the highest likelihood of,
(1) offering favourable terms and
(2) having true alignment with the company to reduce the risk of issues down the line.
Once connections are made, data is shared, and sparks are flying, we will start to collect term sheets from those looking to win the deal. We will work through those together, and we will guide you on any red flags being shown and areas where negotiation would be appropriate. The ultimate goal is to select the party you feel best about and have a deal that helps the company reach its goals.
Once the term sheet is signed, the goal is to keep the ball in the funds’ court and push to close. We will help as needed, whether it be check-ins with the fund, material preparation, or other support. Our work does not stop after the close; we will remain in contact to ensure a smooth transition.
Handling debt is crucial for any business, regardless of its stage of growth. However, properly handling this debt can be tricky, and if mishandled, it can set your projects up for failure.
The Duration Growth Advisors team works alongside your staff to support your business, setting up strong protocols to maintain a healthy debt history in the future.
info@durationgrowth.com
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