Solutions

VENTURE LOANS AND LEASES FOR EMERGING GROWTH COMPANIES

FINANCING SOLUTIONS

Transaction Size

TRANSACTION SIZE

$2-$20 million
incremental to a senior bank facility or in place of equity.

Financial Products

Financial Products

  • Equipment lease line of credit
  • Senior venture loan
  • Subordinated term loan
  • Refinance existing venture debt

FINANCING WITH VENTURE DEBT

Venture capital is typically the first source of institutional financing for high-growth startup companies. With strong venture capital investors, a technology bank lender will typically provide a term loan and/or receivables financing. Venture debt from Trinity Capital Investment compliments both forms of financing and provides significant value to startup companies, venture capital firms, and technology bank lenders.

STARTUP COMPANIES

Startup companies receive growth capital with minimal cost to the business and the added benefit of raising their next round of financing at a higher valuation, resulting in minimal equity dilution.

VENTURE CAPITAL FIRMS

Venture capital investors benefit by maintaining their pro rata ownership in their portfolio company at less cost and bridging to the next key milestone without additional equity funds.

TECHNOLOGY BANK LENDERS

Venture debt can be subordinated behind a senior technology bank lender and strengthens the balance sheet of their portfolio companies.

BALANCED CAPITAL STRUCTURE

Equity

1
Venture Capital Firm
  • Seed capital
  • Early/expansion-stage financing
  • Acquisition or buyout financing
 
Venture-backed Startup Company

Senior Debt

2
Technology Bank
  • Term loan
  • Accounts Receivable Financing

Venture Debt

3
Trinity Capital Investment
  • Equipment lease line of credit
  • Senior/subordinated term loan

Venture debt is a smart and critical source of financing for today’s entrepreneurial companies. Senior and subordinated venture debt both compliment venture capital by extending the cash runway of a startup company to achieve the next milestone while minimizing equity dilution for employees and investors.

EQUIPMENT LEASE FINANCING

  • Provides “just in time” financing for equipment purchases
  • Conserves cash, stabilizes expenses, and provides potential tax benefits
  • Does not require a blanket lien on company assets or IP
  • Does not impact the credit position of other lenders involved
  • Allows equity financing to be used for working capital or strategic growth opportunities
  • Minimizes equity dilution for all shareholders

Senior and Subordinated Venture Loan

  • Can complement or bridge to an equity round of financing
  • Provides working capital to extend the cash runway of a startup company
  • Provides insurance for potential mishaps or delays
  • Can fund the purchase of company assets or finance acquisitions
  • Can bridge the company to profitability
  • Can refinance existing venture debt
  • Minimizes equity dilution for all shareholders
Phone: (480)374-5350 | Fax: (480) 247-5099

3075 West Ray Road, Suite 525, Chandler, AZ 85226

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