Southeast Asia’s Leading
Venture Debt Platform
What is Venture Debt?
Venture Debt refers to any form of debt financing provided to a company that is still dependent on Venture Capital (VC) financing to fund its operations. InnoVen Capital’s core offering is a medium term loan to VC-backed companies, depending on the stage of the company, quantum of equity raised and nature of the requirement. Interest rates and fees are fixed for the tenor of the loan. Repayment of the loan principal and interest payments are typically made on a monthly basis. If the borrower is significantly successful through its lifecycle and has a liquidity event in the form of an IPO or a buyout, an equity “kicker” allows the lender to make some additional returns to compensate for the higher risk.
InnoVen Capital does not normally mandate the end use for the funds and the company is free to use the loan proceeds to fund any number of uses which may include accelerating product development, key hires, expanding to a new market, making acquisitions, operational working capital or even refinancing. While InnoVen Capital does not take board seats on its portfolio companies, the team is happy to leverage its experience and network across geographies, a large number of companies and investors to assist clients as and when required in their business or strategic pursuits.
When should I take a Venture Loan?
We have backed a portfolio of market leaders and unicorns from a range of industry verticals
In this scenario, the company has just raised a Series A round, which is expected to extend its cash runway for 15 months at which point the company has projected to achieve a certain valuation. However, things do not always go as planned and the company was unable to meet its projected milestones due to unexpected delays. Therefore, it burnt through the capital raised in its Series A round and will likely raise a flat Series B round.
A solution could have been to raise a venture loan alongside its Series A round in order to plan (cushion) for the unexpected scenario that it would not meet its projected plan. Thus, the company would have likely been able to extend its cash runway and achieve the necessary milestones prior to running out of cash and having to raise a Series B round of financing.
In this scenario, the company has just raised a Series A round, which is expected to extend its cash runway for 15 months at which point the company has projected to achieve a certain valuation. However, things do not always go as planned and the company was unable to meet its projected milestones due to unexpected delays. Therefore, it burnt through the capital raised in its Series A round and will likely raise a flat Series B round.
A solution could have been to raise a venture loan alongside its Series A round in order to plan (cushion) for the unexpected scenario that it would not meet its projected plan. Thus, the company would have likely been able to extend its cash runway and achieve the necessary milestones prior to running out of cash and having to raise a Series B round of financing.
In this scenario, the company has just raised a Series A round, which is expected to extend its cash runway for 15 months at which point the company has projected to achieve a certain valuation. However, things do not always go as planned and the company was unable to meet its projected milestones due to unexpected delays. Therefore, it burnt through the capital raised in its Series A round and will likely raise a flat Series B round.
A solution could have been to raise a venture loan alongside its Series A round in order to plan (cushion) for the unexpected scenario that it would not meet its projected plan. Thus, the company would have likely been able to extend its cash runway and achieve the necessary milestones prior to running out of cash and having to raise a Series B round of financing.