3 min readNote: Capital Advisors Group is a Boston‐based institutional investment advisor that has been helping venture‐backed companies invest their cash assets for more than 20 years. Debt Advisors Group is the venture debt consulting arm of Capital Advisors Group, which helps venture‐backed companies determine their optimum capital structure, identify appropriate lenders, source term sheets and negotiate…
3 min readAs the stock market continues its volatile trend and media highlight stories of institutional investors and banks taking heavy losses from subprime fallout, the venture debt market has, thus far, weathered the storm and remains largely unaffected. This healthy market in fact, is enjoying positive growth as companies continue to leverage their expensive equity funding…
3 min readUtilization of debt for venture capital backed firms has become an increasingly popular strategic component of young companies’ capital structure. These emerging growth companies often view debt financing as a means to augment their cash position without having to give up as significant a portion of their ownership as required by additional equity financing. Ideally…
2 min readOver the past few years, debt has evolved from a balance sheet burden to a benefit within the venture community. Debt funds, finance companies, banks, and hedge funds have all taken on venture lending positions in order to capitalize on the explosive growth in this industry. Yesterday, an article in the Wall Street Journal, titled…
2 min readThe venture capital market has continued to show impressive growth since the internet bubble burst in 2001, marked by the five-year high of over $25 Billion in funding in 20061. An integral component of this market is venture debt, an approach that is increasingly utilized by young companies seeking to leverage existing equity. Adding debt…
2 min readBackground A venture capital backed mid-stage communications company needed an equipment loan to finance new equipment acquisitions and to refinance existing debt to allow for more financial flexibility. This case study illustrates the benefits of using a direct lending source as opposed to the possible pitfalls of utilizing a broker for debt financing. Client Profile…
2 min readBackground A late stage Venture Capital backed Bio-Tech company was seeking debt to extend its runway. However, the company had very little collateral with which to secure debt financing. This case study illustrates the benefit of Growth Capital (also known as an “airball” by lenders or ”Venture Debt”) as a form of debt financing for…
2 min readBackground This early stage biotech company sought to expand its line of credit and extend its cash runway. Debt Advisors Group* assisted them from start to finish, including needs evaluation, bid solicitation, proposal assessment, terms negotiation, competitive analysis and summary recommendation. This case study illustrates the key financing goals, decision factors and overall process. The…
1 min readNow that Debt Advisors Group, Inc. (DAG) has consulted with more than 354 companies*, we recognize that the relationships we’ve forged with a variety of lenders has been a key to our success. DAG understands not only our clients’ diverse financing needs but also how to match those objectives with the appropriate lenders based on…