What is Steve Muehler Venture Debt?

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• Steve Muehler Venture Debt is a type of alternative debt financing to traditional commercial banks, and offers the ability to customize financing needs to meet your specific company requirements without commercial bank regulatory mandates, restrictive cash deposits, or covenant package.

 

• Steve Muehler Venture Debt is complimentary to your existing venture capital equity investments and provides lower cost growth capital to further extend your runway to success. It is typically used to fund working capital, operating expenses, and growth initiatives of venture capital and private equity-backed companies. Unlike typical traditional bank lending, Steve Muehler Venture Debt is available at all stages of company development from startups, to expansion stage, to high growth companies that do not have positive cash flows or significant assets to use as collateral.

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How does Steve Muehler Venture Debt compare to traditional bank lending?

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• Steve Muehler Venture Debt is designed to be less restrictive, and far more customizable to your company’s unique needs than commercial bank financing. Debt doesn’t require that you deposit your operating account cash balances or have compensating balances as collateral to your loans, and there are no regulatory required restrictive covenants. Steve Muehler Venture Debt provides the ability to work through your growth challenges and restructure loans, unlike that of a regulated bank entity.

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What are the benefits of Steve Muehler Venture Debt compared to equity venture capital funding?

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• For companies at critical stages of development, Steve Muehler Venture Debt can serve as a key financing option to foster growth, with minimal dilution of equity ownership. Steve Muehler Venture Debt financing solutions are intended to complement equity.

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What are the primary uses of Steve Muehler Venture Debt?

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• There is no “one-size-fits-all” approach to venture debt, and each partnership is approached with finding the best fit on a case-by-case basis, however, there are four common use cases for venture debt that showcase its benefit.

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• Extend the runway - Gain more time between equity rounds to build the business and achieve critical milestones, creating potential for higher valuation.

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• Achieve milestones - Achieving milestones quickly in many cases means reaching a liquidity event like an IPO or M&A sooner.

 

• Retain Equity - Retain a larger ownership stake in the company prior to an IPO or other liquidity event.

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• Raise capital - Ability to raise capital with an agile partner that provides the flexible, custom financing solutions you require.

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Steve Muehler Growth Capital Financing:

• Runway extension (cushion to reach next milestones or additional milestones)

• Company, asset, or intellectual property acquisition financing

• Convertible, subordinated and mezzanine loans

• Domestic and international corporate expansion

• Management buy-outs and corporate spinout financing

• Revenue acceleration (sales and marketing development, manufacturing expansion, etc.)

• Vendor financing

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Steve Muehler Asset Based Financing:

• Accounts receivable facilities

• Cash flow

• Equipment acquisition

• Equipment loans or leases

• Facilities build-out and/or expansion (lab, manufacturing capacity, etc.)

• Inventory

• Working capital revolving lines of credit

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Steve Muehler IPO, M&A & Public Company Financing:

• Bridge financing to IPO or M&A or technology acquisition

• Cash flow financing to protect against share price volatility

• Competitor acquisition

• Dividend recapitalizations and other sources of investor liquidity

• Pre-IPO financing for extra cash on the balance sheet

• Public company financing to continue asset growth and production capacity

• Short-term bridge financing

• Strategic and intellectual property acquisition financings