Entrepreneurs: Grow your business with less dilution
Our venture debt team invests in scalable businesses that are ready for next-level growth.
If your business has stable recurring revenue and you are looking for finance to extend your runway, we should talk.
As a guide we look for businesses with these characteristics:
$500k annual revenue
We invest in businesses with about half a million dollars annual recurring revenue. At this level of revenue, debt can be serviced and the extra leverage on the balance sheet does not hold back business growth.
Stable unit economics
We invest in businesses that can clearly articulate customer acquisition cost, healthy gross margins, customer lifecycle value, and churn.
Diverse customer base
We invest in businesses with multiple enterprise contracts, or a number of tested scalable customer segments for direct to consumer. This means business growth is less susceptible to volatile demand.
This is not a condition of investment, but it is more than likely that you have already raised an equity round from private venture capital or angel investors. This means you have used these earlier finance rounds to prove a product is viable, and stabilise product margins. In this case, we invest alongside your cap table to extend your runway on the way to your next equity finance round.
Founders raise venture debt with Cataliize because:
- Grow the business with finance that is cheaper, faster to organise, and less dilutive than equity
- Repayments can be fixed monthly, shared revenue, or an interest-free bullet loan depending on the business plan
- No personal director guarantees
- No voting rights means the startup doesn’t need to change the board
- Founders do not need to formally value the business which saves intensive time, cost, and negotiations
- Debt increases shareholder value by extending the business runway before the next equity round
- Interest payments on debt are tax deductible
If you are interested in learning more we would love to talk.
Tell us about your venture here.
Speak to one of our team members: