We then discuss these with you to tailor your venture debt. Fast-growing young businesses with a limited trading history and little or no track record of profitability usually struggle to borrow money from conventional sources, even when their futures are bright. Venture debt is funding aimed at high-growth scale-ups, provided by specialist lenders. They gave us the capital we needed to grow our business when other investors wouldn’t. At BOOST&Co, we’ve specialised in providing venture debt to UK-based SMEs since 2011 – and amid the coronavirus pandemic, this type of fast, flexible funding is more important than ever. They will also assess the company’s enterprise value, as well as making a judgement about its future prospects for growth. loans tend to be priced individually, depending on the needs and circumstances of the borrower (for example, companies at an earlier stage of their development or with a faster cash-burn rate will normally pay more). Achieve next-level growth with £2m to £10m tailored to your needs. November 20, 2018 “The moment we got to know Espresso, we knew we were in good hands. Where growth gets smarter. Armour Communications is a specialist in mobile data security and compliance, offering businesses government-grade encryption for secure communications across voice and conference calls, messaging video and data-sharing. Every one of their loans is individually designed to fit each SME’s needs. Growth Debt is an attractive, cheaper alternative to pure equity financing for companies that are beyond their proof of concept phase and offers a quick and simple process with flexibility in payback terms while keeping shareholders dilution and management distraction to a minimum. Once secured, venture debt can be drawn down over time. BOOST&Co offers term loans, venture debt and invoice financing for innovative, fast-growing SMEs. Venture debt is a loan that provides working capital for early-stage and growth-stage companies without the dilutive effect of a full-fledged equity investment. How Altus Assessments CEO Rich Emrich used venture debt to boost its growth. – but more on that later. The company provides growth loans and venture debt solutions to innovative SMEs based in Europe. BOOST&Co Limited is registered in England, company number 07728296. First, what exactly are we talking about here? Funding is available earlier and in larger amounts than traditional bank loans, and these loans do not require personal guarantees – so if you have an innovative company that is expanding rapidly but needs investment to secure its next stage of growth, venture debt could be ideal for you. We assess how much we can lend once we understand these factors. These types of loans are particularly effective for SMEs that are yet to achieve profitability but have an established business model and clear prospects for growth. But venture debt may still be available to start-ups with a viable business model and strong prospects for growth, and these loans are aimed at just this sort of firm. Thanks for subscribing to our newsletter. BOOST&Co provided Pod with a £2.4m growth capital loan, which the firm is using to expand routes to market through partnerships with hardware manufacturers and to strengthen its marketing. The spend analytics and buying automation business specialises in driving operational improvement and cost reduction for its customers, which include a variety of blue-chip consultancy firms. Pod Group is a mobile virtual network operator that helps companies to use the “internet of things” by providing the connectivity they need, plus a modular platform to connect, manage, secure and bill remote applications. Fast-growing businesses often plan to increase their speed of expansion by implementing a growth strategy based on mergers and acquisitions. At BOOST&Co, we’ve specialised in providing venture debt to UK-based SMEs since 2011, but one of the questions we’re frequently asked is “what does ‘venture debt’ mean?” It’s a form of fast, flexible funding that’s proving more important than ever amid the coronavirus pandemic, so here, we aim to demystify the topic, giving you all the facts in case venture debt … Espresso Capital. We don’t take board seats; we trust you to deliver your business plan. Accelerate your business expansion with £2m to £20m of flexible funding and enjoy freedom while holding on to your equity. Get in touch today. However, this model means that companies must have finance in place to enable them to respond quickly when new opportunities arise. BOOST&Co provided Simfoni with a £2m growth capital loan, which the company is using to expand both its operational base and its sales and marketing teams. In summary, venture debt is an actively emerging form of venture funding that is targeted for VC-backed businesses looking for additional funds to fuel growth. Venture loans are also used to finance purchases of equipment, but the most popular use is to fund milestone initiatives that can boost a company’s future valuation. This implies around $3.9B debt market. Easiest and Most Trusted Place to Buy, Sell, and Manage your Digital Currency. Here’s how to impress them, Venture debt 101 – your top questions answered, Why taking easy decisions is often the hardest thing for entrepreneurs to do. After a lender has designed a loan specifically for your business, you can use it in a number of ways. These can include the purchase of equipment or the cost of software licences. Boost&Co is a provider of debt solutions based in London, United Kingdom. is funding aimed at high-growth scale-ups, provided by specialist lenders. BOOST&Co offers venture debt in the form of term loans, through its, and also via the government’s Coronavirus Business Interruption Loan Scheme (. ) They understand innovation and entrepreneurship and they create financing solutions to help SMEs develop. Menu. Banks are generally wary of the risks posed by these start-ups and tend to steer clear (as seen in their initial reluctance to provide CBILS loans to SMEs). But how do fast-growing companies fund ambitious growth strategies, at a time when banks’ support for SMEs is declining? BOOST&Co Limited is authorised and regulated by the Financial Conduct Authority. Insights provided by BOOST&Co's Ria Hopkinson We explain why this type of fast, flexible funding is ideal for businesses that struggle to gain funding from banks At BOOST&Co, we’ve specialised in providing venture debt to UK-based SMEs since 2011, but one of the questions we’re frequently asked is “what does ‘venture d We help you to scale your business and achieve higher valuations. often plan to increase their speed of expansion by implementing a, growth strategy based on mergers and acquisitions, . BOOST&Co’s term loans range from £2m to £10m and are typically repayable over periods from 36 to 60 months. is a specialist in mobile data security and compliance, offering businesses government-grade encryption for secure communications across voice and conference calls, messaging video and data-sharing. Get leadership tips from chairman Charles Towers-Clark, author of The W.E.I.R.D. The products available from non-bank lenders such as BOOST&Co combine the traditional features of a loan with aspects of venture capital that have traditionally been the preserve of investors offering equity finance. They will also assess the company’s enterprise value, as well as making a judgement about its future prospects for growth. It can be particularly difficult for relatively young businesses to manage these needs where they vary by season. Pocket Aces will use the funds to boost its content output and invest in new content formats and distribution channels, it added. BOOST&Co provided Simfoni with a £2m growth capital loan, which the company is using to expand both its operational base and its sales and marketing teams. Once secured, venture debt can be drawn down over time, making it perfectly suited to acquisition growth strategies. It may appear to be more expensive than traditional bank finance, but it does provide fast-growing SMEs with access to non-dilutive debt that can be used for various types of growth. Use our tool to budget and to work out costs and cash flows for your loan. Tomasz Tunguz notes that it’s 16x as popular as it was only six years ago. However, not all VC-backed companies receive venture debt, and a study has recently estimated that lenders provide one venture debt dollar for every seven venture capital dollar invested. It is included in the FCA register and its registration number is 711918. Unless extended (and it likely will be extended), the debt limit reverts to … Pod is based in Cambridge, with offices in Spain, Hong Kong, the US, Mexico and Nicaragua. Looking for funding? Simfoni is a next-generation digital solutions provider for procurement professionals, with regional offices in Chicago, London and Dubai. Scale your business without losing control. In addition, we believe that many venture capital and private equity fund sponsors encourage their portfolio companies to use debt financing for a portion of their capital needs as a means of potentially enhancing equity returns, minimising equity dilution and increasing valuations prior to a subsequent equity financing round or a liquidity event.” Focus on what you know best – your business processes – and leave the marketing work to us. Read more here. The debt provided are generally in the form of working capital, venture debt, mezzanine financing, revenue loan, revenues financing, acquisition financing, funds for stock purchases, equipment, royalty … BOOST&Co offers venture debt in the form of term loans, through its existing product and also via the government’s Coronavirus Business Interruption Loan Scheme (CBILS) – but more on that later. Boost puts everything you need to run your business in one place while providing access to enhanced services and communication tools Users can have complete confidence in the fact that they know what is going on with their business; All points of contact are in one place which saves a tremendous amount of time; All systems can be integrated for one point of access High-growth businesses that are yet to break into profit must carefully manage their cash flow, but they will occasionally need to raise funding for working capital requirements, such as stock purchases. Fast-growing young businesses with a limited trading history and little or no track record of profitability usually struggle to borrow money from conventional sources, even when their futures are bright. Read our comprehensive guide to decide if growth capital is the right option for you. Cons of Venture Debt Financing. A CBILS loan with our partner Growth Lending … For some startups, venture debt can be a solid option to boost their cash flow and supplement their VC round with very little dilution to their remaining equity. , making it perfectly suited to acquisition growth strategies. BOOST&Co provided Pod with a £2.4m growth capital loan, which the firm is using to expand routes to market through partnerships with hardware manufacturers and to strengthen its marketing. Because venture debt lenders focus on a firm’s enterprise value and business model rather than its historical financial performance, businesses do not need to be profitable to be eligible for these types of loans, although they must be generating revenues when they apply. These are potentially attractive to start-ups and high-growth companies that do not yet have the type of positive cash flows that banks look for, or the valuable assets that banks typically expect borrowers to put up as collateral against their debt. Plans for servicing debt in a downside scenario. ). Venture debt can be a handy tool in financing such needs – and because venture debt loans are offered in tranches, SMEs are able to plan for future investments, too. BOOST&Co offers venture debt of £2m to £10m, tailored to your needs. Bolt has raised $55.84M to boost expansion . You need to have a venture capital investor who offers venture debt financing. Nevertheless, this sort of funding is open to young and relatively immature businesses, even though bank finance may not be an option, because venture debt providers are interested in the current and expected performance of a firm, rather than its historical financial performance. Read more. Fast-growing businesses often struggle to fund the investments that would secure further growth. Sign up and we'll keep you updated on our news, insights and exclusive events throughout the UK. Step-change growth is within your grasp. The company secured a £2m growth capital loan from BOOST&Co, which it is using to expand its routes to market, increase its marketing efforts and continue product development. Capital for smarter growth. Venture debt is an appealing alternative for scale-ups in need of growth capital because it provides more funding, faster and earlier in a company’s life cycle, and without the use of fixed criteria, ratio-testing or covenants. Read more. With proper preparation and a solid vetting process, your business will attract a venture capital partner that can help it grow to its next level. Preparation is the key to securing growth capital from a specialist lender. The BOOST has been established in 2014 with the equity $83k, financed at the own savings of the founder with zero debt level. You will receive an email with a link to confirm your email address. However, this model means that companies must have finance in place to enable them to respond quickly when new opportunities arise. Despite tough trading conditions and ongoing uncertainty around both Covid-19 and Brexit, entrepreneurs retain a healthy appetite for establishing start-ups, with a record number – almost 700,000, a 2.8% increase on the previous year – being founded in 2019. Venture debt is cheaper than equity and provides more capital earlier in your development than the banks. Be sure to have the following documents ready for review: For more details, take a look at the illustration below, which shows the eight factors we consider most important for businesses preparing to apply for growth capital. So, if you want to fund your company’s growth without losing equity and think that venture debt could be right for you, get in touch using the details below. Banks are generally wary of the risks posed by these start-ups and tend to steer clear (as seen in their, initial reluctance to provide CBILS loans, Despite tough trading conditions and ongoing uncertainty around both Covid-19 and Brexit, entrepreneurs retain a healthy appetite for establishing start-ups, with a record number – almost 700,000, a 2.8% increase on the previous year –. How can we do this, and how can scale-ups secure the capital to support their growth, be it in the form of venture debt, equity or traditional bank financing? Venture debt 101 – your top questions answered. It is included in the FCA register and its registration number is 711918. , we’ve specialised in providing venture debt to UK-based SMEs since 2011, but one of the questions we’re frequently asked is “what does ‘venture debt’ mean?” It’s a form of fast, flexible funding that’s proving more important than ever amid the coronavirus pandemic, so here, we aim to demystify the topic, giving you all the facts in case venture debt could work for you. BOOST&Co Limited is authorised and regulated by the Financial Conduct Authority. is a mobile virtual network operator that helps companies to use the “internet of things” by providing the connectivity they need, plus a modular platform to connect, manage, secure and bill remote applications. Funding is available earlier and in larger amounts than traditional bank loans, and these loans do not require personal guarantees – so if you have an innovative company that is expanding rapidly but needs investment to secure its next stage of growth, venture debt could be ideal for you. San Francisco, CA coinbase.com These include: Venture debt can provide a useful source of headroom for a loss-making company as it closes in on profitability. BOOST&Co has been providing venture debt and growth capital loans to exciting, fast-growing companies since 2011, having already worked with more than 500 high-tech and innovative businesses that needed funding to move their enterprises forward. At BOOST&Co, we’ve specialised in providing venture debt to UK-based SMEs since 2011, but one of the questions we’re frequently asked is “what does ‘venture debt’ mean?” It’s a form of fast, flexible funding that’s proving more important than ever amid the coronavirus pandemic, so here, we aim to demystify the topic, giving you all the facts in case venture debt could work for you. Digital Marketing Audits. Growth capital is a form of. There are several philosophies behind the various players. Find out more here. At BOOST&Co they don’t have a fixed lending model. Here are just four examples of companies we’ve helped to grow. Read more here. The flexibility of venture debt makes it well-suited to this purpose. in the UK, so it is vital that we encourage entrepreneurs to start businesses and to drive them to the point of scalability. Extending your cash runway to deal with operational expenses is an integral part of that. Fireside Chat and AMA with Nicolas Dessaigne, Co-founder and BOD (ex CEO), Visiting Partner at Y Combinator and Stephen Cummins CEO at AppSelekt. Its principal place of business is 4th Floor, 15 Crinan Street, London, N1 9SQ and its registered address is 1 Vicarage Lane, London, E15 4HF. SMEs form 99.9% of the 5.9 million businesses in the UK, so it is vital that we encourage entrepreneurs to start businesses and to drive them to the point of scalability. The Venture debt, which is a percentage of the last equity raised by Bolt will be used in developing better technology, safety … Many business founders believe that the difficulty of securing loans from banks leaves them with few options. Here, we answer the most frequently asked questions about venture debt. . Lenders will want to see that your business is already generating strong revenues (BOOST&Co, for example, looks for a revenue rate of £2m). This is not to suggest that venture debt is suitable for start-ups with no track record or no significant revenues or assets. As of December 31st, 2019 … A sound venture debt investor will advise on whether the company is mature and stable enough to take on debt financing or suggest the steps it needs to take to become venture debt ready. Read on to find out if these loans – which we offer through our existing product and also via the government’s Coronavirus Business Interruption Loan … The spend analytics and buying automation business specialises in driving operational improvement and cost reduction for its customers, which include a variety of blue-chip consultancy firms. Growth capital loans tend to be priced individually, depending on the needs and circumstances of the borrower (for example, companies at an earlier stage of their development or with a faster cash-burn rate will normally pay more). Of course, venture debt is not suitable for every young business. More than a hundred countries are expected to pay $130 billion in debt interest by this year — with about half of that debt being held by private investors. This is not to suggest that venture debt is suitable for start-ups with no track record or no significant revenues or assets. Some loans include covenants that the company must meet, but others do not. Not all VCs do offer debt. We have worked with a range of firms that wanted to raise venture debt for a variety of reasons: to bridge the gap to breaking even, to extend their cash runway before an equity round, for mergers and acquisition, for working capital or to open new sites. Pod is based in Cambridge, with offices in Spain, Hong Kong, the US, Mexico and Nicaragua. Download our PDF guide to find out what it takes to be successful in your application to BOOST&Co. It can be particularly difficult for relatively young businesses to manage these needs where they vary by season. 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