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. After a lender has designed a loan specifically for your business, you can use it in a number of ways. Many business founders believe that the difficulty of securing loans from banks leaves them with few options. Once secured, venture debt can be drawn down over time. It is included in the FCA register and its registration number is 711918. CEO, here. BOOST&Co Limited is registered in England, company number 07728296. 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. Lenders will want to see that your business is already generating strong revenues (BOOST&Co, for example, looks for a revenue rate of £2m). Tomasz Tunguz notes that it’s 16x as popular as it was only six years ago. 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. BOOST&Co Limited is registered in England, company number 07728296. 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. We don’t take board seats; we trust you to deliver your business plan. San Francisco, CA coinbase.com What Is Growth Capital? CEO. Accelerate your profitability It takes a few meetings and around four to six weeks to complete a BOOST&Co loan. Thanks for subscribing to our newsletter. The firm secured a £5m growth capital loan from BOOST&Co, enabling it to strengthen its relationships with suppliers, expand its client base and focus on innovation. 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. 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. often plan to increase their speed of expansion by implementing a, growth strategy based on mergers and acquisitions, . Everything you need to know about using venture debt for smarter growth. Leadership. 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). The firm secured a £5m growth capital loan from BOOST&Co, enabling it to strengthen its relationships with suppliers, expand its client base and focus on innovation. Venture debt is about understanding in detail your business and how you will grow. There’s one obvious hurdle. They understand innovation and entrepreneurship and they create financing solutions to help SMEs develop. Once secured, venture debt can be drawn down over time, making it perfectly suited to acquisition growth strategies. Venture debt is cheaper than equity and provides more capital earlier in your development than the banks. Of course, venture debt is not suitable for every young business. – but more on that later. Boost&Co is a provider of debt solutions based in London, United Kingdom. Venture debt 101 – your top questions answered. Venture debt can provide a useful source of headroom for a loss-making company as it closes in on profitability. is funding aimed at high-growth scale-ups, provided by specialist lenders. They often feel that they need to raise equity capital to fund future growth, thus giving up a large chunk of ownership and possibly even ceding control to their investors. Make sure you’re prepared when you apply and you’re halfway there. First, what exactly are we talking about here? 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. Accelerate your business expansion with £2m to £20m of flexible funding and enjoy freedom while holding on to your equity. Easiest and Most Trusted Place to Buy, Sell, and Manage your Digital Currency. 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. 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 Ventures’ performance marketing services work on a cost-per-acquisition basis to drive sales and leads to your company. Bolt has raised $55.84M to boost expansion . is a next-generation digital solutions provider for procurement professionals, with regional offices in Chicago, London and Dubai. Plans for servicing debt in a downside scenario. Read our comprehensive guide to decide if growth capital is the right option for you. 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 … This implies around $3.9B debt market. Pocket Aces will use the funds to boost its content output and invest in new content formats and distribution channels, it added. BOOST&Co’s term loans range from £2m to £10m and are typically repayable over periods from 36 to 60 months. BOOST&Co Limited is authorised and regulated by the Financial Conduct Authority. Bolt (Previously known as Taxify), a popular ride-hailing startup has raised $55.84M in venture debt from the European Investment Bank (EIB) to boost its global expansion and take on rivals in current markets. 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. Find out more here. Digital Marketing Audits. So here’s a look at how we define a scale-up that is ready for venture debt. Venture debt gives rising start-ups like yours a boost in valuation so you’re in a much stronger position for the next institutional equity round. There are several philosophies behind the various players. 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. Where growth gets smarter. First, what exactly are we talking about here? 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. 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. 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. Simfoni is a next-generation digital solutions provider for procurement professionals, with regional offices in Chicago, London and Dubai. Sign up and we'll keep you updated on our news, insights and exclusive events throughout the UK. Get in touch today. 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. Pod is based in Cambridge, with offices in Spain, Hong Kong, the US, Mexico and Nicaragua. We’re always keen to hear from businesses that are ready to grow. Find out more. Scale your business without losing control. 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. LBO - Leveraged Buyout - Using Debt to Boost Equity Returns Because v. enture 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. You will receive an email with a link to confirm your email address. Extending your cash runway to deal with operational expenses is an integral part of that. 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. How Altus Assessments CEO Rich Emrich used venture debt to boost its growth. ). 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. However, this model means that companies must have finance in place to enable them to respond quickly when new opportunities arise. 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. You need to have a venture capital investor who offers venture debt financing. 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. 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.” 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. Venture debt financing may be a creative way to raise capital, but that doesn’t mean it’s right for every startup. The flexibility o. f venture debt makes it well-suited to this purpose. 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. However, this model means that companies must have finance in place to enable them to respond quickly when new opportunities arise. 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. 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 –. Use our tool to budget and to work out costs and cash flows for your loan. We want to know about your business model, your history, how you win clients and your prospects for growth. Xalient is an independent IT consulting and managed-services provider. ... BOOST&Co Limited is registered in England, company number 07728296. Fireside Chat and AMA with Nicolas Dessaigne, Co-founder and BOD (ex CEO), Visiting Partner at Y Combinator and Stephen Cummins CEO at AppSelekt. They will also assess the company’s enterprise value, as well as making a judgement about its future prospects for growth. Lenders will want to see that your business is already generating strong revenues (BOOST&Co, for example. 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 Although repayments usually include both interest and capital, some borrowers opt for an interest-only period of between six and 12 months at the beginning of the loan. The London-based company is now making its expertise available to the private and commercial sector. The London-based company, which has contracts with well-known names including Kellogg’s, Hamleys and Keurig Dr Pepper, aims to make its clients resilient, responsive and adaptable to change by ensuring that their businesses are robust and flexible enough to cope with the demands of the future, not just the challenges of today. 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. struggle to fund the investments that would secure further growth. 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. boost cash reserves when they're either seeking a runway extension or want greater flexibility 2 New subsidiary KfW Capital: a boost to venture capital financing in Germany Press Release from 2018-10-09 / Group, KfW Capital. 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. Get leadership tips from chairman Charles Towers-Clark, author of The W.E.I.R.D. These can include the purchase of equipment or the cost of software licences. 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. Read more here. 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). They will also assess the company’s enterprise value, as well as making a judgement about its future prospects for growth. These include: Venture debt can provide a useful source of headroom for a loss-making company as it closes in on profitability. 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. Every one of their loans is individually designed to fit each SME’s needs. At BOOST&Co, we believe that to support a business, you have to know a business. 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. in the UK, so it is vital that we encourage entrepreneurs to start businesses and to drive them to the point of scalability. 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. Some loans include covenants that the company must meet, but others do not. The Venture debt, which is a percentage of the last equity raised by Bolt will be used in developing better technology, safety … Hatcher+, a leading, next-generation, data-driven venture firm, has launched VAAST, the world's first and most advanced Venture As A Service Technology Platform (VAAST™). Venture Capital. Venture debt minimises equity dilution. Learn more. Read more. Menu. Fast-growing businesses often struggle to fund the investments that would secure further growth. Acquisitions BOOST&Co Culture Invoice financing Partners Venture debt Venture debt for MRR Use of funds Acquire a business Bridge the gap Buy out a business Extend cash runway Factor your invoices Invest in change This final element is usually structured as a warrant, giving the lender the right to buy a small portion of equity at a fixed price during the term of the loan. At BOOST&Co they don’t have a fixed lending model. Espresso Capital. Preparation is the key to securing growth capital from a specialist lender. 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. Venture debt typically incorporates three elements: a fee of between 1% and 2% of the approved loan amount, an annual interest rate of between 10% and 12%, and an equity kicker worth 10% to 20% of the loan. Pod is based in Cambridge, with offices in Spain, Hong Kong, the US, Mexico and Nicaragua. We then discuss these with you to tailor your venture debt. But how do fast-growing companies fund ambitious growth strategies, at a time when banks’ support for SMEs is declining? Here, we answer the most frequently asked questions about venture debt. Cons of Venture Debt Financing. Read more. 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. 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. BOOST&Co offers venture debt in the form of term loans, through its, and also via the government’s Coronavirus Business Interruption Loan Scheme (. ) Looking for funding? 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. Venture capital can give your business the capital it needs for the next stage of growth. 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. They gave us the capital we needed to grow our business when other investors wouldn’t. This is not to suggest that venture debt is suitable for start-ups with no track record or no significant revenues or assets. 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. The BOOST has been established in 2014 with the equity $83k, financed at the own savings of the founder with zero debt level. We help you to scale your business and achieve higher valuations. BOOST&Co offers term loans, venture debt and invoice financing for innovative, fast-growing SMEs. Achieve next-level growth with £2m to £10m tailored to your needs. BOOST&Co Investment Management King's Cross, London 1,715 followers Working capital and debt finance for fast-growing SMEs Ready to meet growth capital investors? BOOST&Co provides debt solutions to innovative SMEs in Europe. Here are just four examples of companies we’ve helped to grow. Stride said in a statement on Wednesday that the venture debt firm will be a strategic partner of Pocket Aces’ growth journey with this investment. Get leadership tips from chairman Charles Towers-Clark, author of The W.E.I.R.D. 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. A CBILS loan with our partner Growth Lending … . These can include the purchase of equipment or the cost of software licences. 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. Not all VCs do offer debt. Precision Lending doesn’t require you to give 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. Growth capital is a form of. Venture debt is funding aimed at high-growth scale-ups, provided by specialist lenders. It can be particularly difficult for relatively young businesses to manage these needs where they vary by season. Capital for smarter growth. , making it perfectly suited to acquisition growth strategies. It can be particularly difficult for relatively young businesses to manage these needs where they vary by season. 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. Equity investments are often a preferred way to grow without the debt burden of bank loans. 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. Venture debt has exploded in popularity in the last few years. 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. 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. 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. We assess how much we can lend once we understand these factors. The flexibility of venture debt makes it well-suited to this purpose. 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. November 20, 2018 “The moment we got to know Espresso, we knew we were in good hands. Download our PDF guide to find out what it takes to be successful in your application to BOOST&Co. The London-based company, which has contracts with well-known names including Kellogg’s, Hamleys and Keurig Dr Pepper, aims to make its clients resilient, responsive and adaptable to change by ensuring that their businesses are robust and flexible enough to cope with the demands of the future, not just the challenges of today. Loans can be structured to suit the borrower: some businesses prefer to draw down funding in tranches, as and when they need the money, which reduces the total interest cost. But how do fast-growing companies fund ambitious growth strategies, at a time when banks’ support for SMEs is declining? 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