2 min readCommentary The venture debt markets got off to a historically tepid start in 2023 and continued to slow its pace through Q2. According to Pitchbook, total funding was down another 15% from the prior quarter and dropped more than 67% from the same period in 2022. As we review debt as a percentage of the…
3 min read Commentary The venture debt markets got off to a historically tepid start in 2023. According to Pitchbook, total funding was down more than 60% from the prior quarter and dropped more than 40% from the same period in 2022. As we review debt as a percentage of the venture equity markets, the Q1 2023…
4 min readVenture Debt Non-dilutive capital for venture backed startups in early and growth stages Revenue-Based Financing Funding based on a fixed percentage of gross revenues Equipment Leasing Equipment rental agreement with a lender based on a fee schedule Asset Based Lending Revolving line of credit or term loan secured by collateral Recurring Revenue Lines Line of…
5 min readCo-authored by Ryan McCartney Startups are seeking new sources of debt financing following the collapse of Silicon Valley’s biggest lender. The collapse of Silicon Valley Bank has spurred venture capital-funded growth companies to take a harder look than ever at their cash flows, burn rates, and how much runway they have to profitability. Many of…
3 min readAuthor’s Note Since compiling the data for our Q4 2022 debt market quarterly update, the market has faced unprecedented turmoil led by the collapse of Silicon Valley Bank. In order to provide consistent updates on the debt financing market, we are distributing our Q4 2022 report but also want to provide context on the current…
3 min readWelcome to Capital Advisors Group’s inaugural quarterly newsletter that will provide a snapshot of the current state of the debt financing markets. Capital Advisors Group has been advising innovative venture-backed and growth-stage companies on debt finance transactions for more than 18 years. This newsletter will provide insight into debt markets, specifically as they relate to…
6 min readAfter enjoying years of favorable borrowing conditions, emerging biotechnology growth companies are facing headwinds generated by the current disruption of global financial markets. Inflation is high, interest rates are on the rise and equity markets are sinking. Lenders have shifted to conservatism, setting the bar higher for borrowers who now must adjust to new realities….
5 min readCapital Advisors Group has written extensively in the past about the when and how a company can maximize the utility of venture debt financing, focusing on variables such as the company’s financial profile, its growth and development strategy, and management’s priorities. With this information in hand, Capital Advisors Group can help identify and engage the…
8 min readDOWNLOAD FULL REPORT Capital Advisors Group is a Boston-area based institutional investment advisor that has been helping venture-backed companies invest their cash assets for more than 22 years. Its debt finance consulting division helps venture-backed companies determine their optimum capital structures, identifies appropriate lenders, sources term sheets and negotiates deals. Executive Summary Capital Advisors Group’s…
7 min readDOWNLOAD FULL REPORT Introduction At Capital Advisors Group, we have advised hundreds of early-stage companies on billions of dollars of debt transactions over the past 17 years. You might think that we’ve seen it all—but we haven’t, not even close. Every deal is different, and every company’s capital structure is unique. However, there are some…
