Mon, 27 September 2021
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Growth startups can raise not only funding for equity but also funding for debt called venture debt. Venture debt doesn’t dilute the founders and provides capital to continue the growth. Here are some key terms and conditions to know when looking for venture debt: There are term loans and revolving lines of credit with maturity dates and interest rates. The lender will look to secure assets for the loan. Check to see if the intellectual property will be required. If they do tie to the IP, then they will want a negative pledge in that they don’t want you to pledge the IP to any other lender. Many lenders will require you to move all your banking to their firm. If so, understand the account transfer period. The amount of funding and timing is a key issue. Will the funds be transferred in one go or in tranches? Check to see the requirements for each tranche. Check for fees on early payoff and exits. The default rate is the increase in the interest rate in case you default on the payments. Finally, warrants are often part of the terms. A warrant is the right to buy stock at a specified price. What is the price of the warrant and what is the timeframe it is active? Check for these key points in a discussion about venture debt. For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Feedback please contact info@tencapital.group Please subscribe, share, and leave a review. |
Mon, 27 September 2021
In this episode, Hall welcomes Ross Darwin, Principal at Owl Ventures. Founded in 2014, Owl Ventures is the largest venture capital firm in the world focused on the education technology market with over $1.3 billion in assets under management. The Silicon Valley-based firm was purposely built to partner with and help scale the world’s leading education companies across the education spectrum including PreK-12, higher education, and the future of work (career mobility/professional learning). They invest in companies at all stages from early, growth, and later stages and across all geographies around the world. You can visit Owl Ventures at www.owlvc.com, via LinkedIn at www.linkedin.com/company/3855155/, and via Twitter at https://twitter.com/owlvc?lang=en. Ross can be contacted via email at ross@owlvc.com, and via LinkedIn at www.linkedin.com/in/rossdarwin. Music courtesy of Bensound. Please subscribe, share, and leave a review. |