VENTURE LOANS
Venture Debt and Growth Capital
Venture debt growth capital is geared for companies that: 1) are seeking to raise capital through financing vehicles that are less dilutive than equity, 2) are looking for flexible capital that is less restrictive than bank financing, 3) are planning to hit or exceed milestones and raise the next round at a higher valuation, or 4) want to bridge the capital gap to cash flow breakeven, where the company can grow organically.
Razi Capital considers venture debt transaction that range between $250,000 and $10 million. However we can address larger and more long-term growth needs through several syndicates or by combining multiple loan products. Loans typically have 18 to 36 months term, although in some cases may have terms of up to 5 years. Through a combination of longer amortizations and interest only payment periods we can structure a longer cash runway, extending the time needed for the company to achieve the desired valuation. The venture debt loan can be both senior or subordinated debt.
Target Profile
- Strong management team
- At least one round of equity financing
- Strong intellectual property
- Addressing a large market need
- Defined exit strategy
Industries
Software
Mobile and Wireless Technology
Pharmaceuticals
Medical Devices
Healthcare Services
Networking
Computer Hardware
Semiconductors
Alternative Energy
and More ...
The U.S. venture debt market is a multi-billion dollar industry that accounts for a significant portion of the capital raised each year by venture backed companies and entrepreneurs looking to gain market advantage and achieve business milestones through the use of flexible and minimally dilutive capital. Many well-known companies have used venture debt as part of their capital structure to gain first-to-market advantage, to achieve the optimal capital structure and to maximize shareholder value.
Venture Leasing
Venture leasing is a great solution for companies that are looking to acquire equipment, but do not want to use cash or additional equity capital to invest in depreciating assets. Razi Capital offers a variety operating and capital lease structures to address either a one-time or multiple equipment transactions in a given year. An equipment financing line of credit is useful for companies that anticipate acquiring equipment at various points throughout the year. This is convenient, because the company goes through one round of due diligence and documentation, but can draw on the line at multiple times during the year.
As part of the venture leasing program, Razi capital can structure sale lease-back transactions for companies that have free and clear equipment assets. The proceeds from such financing can be used various purposes including, providing additional working capital, acquiring additional equipment, covering soft costs of a transaction, acquiring additional intangible assets, and more.
Razi Capital considers equipment financing transactions between $50,000 and $10,000,000. The transaction can be structured with or without warrants. The terms usually range from 24 to 36 months, but longer terms may be considered for certain asset types. The financing is secured by a specific lien on the collateral. We consider equipment located in U.S., Canada, Latin and South America, and many other parts of the world.