2 min readFinancing growth through debt has long been a staple of modern corporate economics, especially for early-stage ventures and emerging growth companies. But intense competition among lenders in the past decade has changed the rules of the game. What was once a straightforward business consisting of fixed-rate loans backed by hard assets now features an array…
4 min readExecutive Summary This paper provides an update, in broad terms, on the state of the debt financing markets. Capital Advisors Group works with companies across industries that are early stage or, for other reasons, may not qualify for large commercial bank debt financing facilities. In this semi-annual review of the market, we will discuss how…
3 min readVenture debt has long been a useful tool for early-stage companies seeking more cash without the share dilution that comes from another visit to equity markets. But what happens to companies that have already negotiated healthy debt packages—especially at a time when venture capital investing has slowed, and when tapping the nearly dormant IPO market…
1 min readEmerging-growth companies have long used debt financing as a dependable means of extending cash runways, especially when the ebb and flow of markets injects uncertainty into when, where and how they will be able to raise new equity rounds. Recently, as competition in debt markets has increased, deep-pocketed lenders have been working to keep their…
2 min readIncreased competition among lenders in the corporate debt financing market is leading many companies to evaluate refinancing options. More advantageous terms can extend amortization schedules, free up cash flow, or even increase their leverage to build out operations and pursue acquisitions. Unlike equity, debt can often times be refinanced to suit changing corporate objectives and…
1 min readIn times of economic uncertainty, debt financing can be a valuable tool for venture capital-backed companies that need to extend cash runways between equity rounds—and now is one of those times. Since last December, emerging-growth companies have been sailing against headwinds they haven’t faced in quite a while. Growth of total U.S. venture capital investing,…
1 min readA Robust Market in Spite of Headwinds Following a healthy run-up in total venture capital investing in the U.S. in 2014 and 2015, venture capital-backed companies now are sailing against economic and financial headwinds. In 2016, stock market volatility, a dramatic slowdown in new IPO listings, and the possible tapering of the growth of total…
1 min readAs we ring in the New Year, we here at Capital Advisors Group would like to take stock of the year past and what lies ahead in 2016. Two important themes that underpin the changing of the calendar year have been the Federal Reserve raising interest rates and an economy which is seeing higher asset…
2 min readCapital Advisors Group is a Boston area-based institutional investment advisor that has been helping venture-backed companies invest their cash assets for more than 25 years. Its debt finance consulting division helps early stage companies, both public and private, determine their optimum capital structure, identify appropriate lenders, source term sheets and negotiate debt financing deals Executive…
1 min readThe life sciences debt financing market has experienced a turbulent decade. From the highs of the mid-2000’s to the credit crisis of 2008, and eventually to the slow but steady climb since 2010, investment and opportunity have expanded and contracted. Many of the market forces that made equity markets so volatile during this period impacted…