Venture debt: accelerate your adventure
Achieve next-level growth with £1m to £10m, tailored to your needs. Venture debt is cheaper than equity and provides more capital, earlier in your development, than the banks. We help you to scale your business and achieve higher valuations. We don’t take board seats; we trust you to deliver your business plan.
How it works
Venture debt – a form of fast, flexible funding aimed at high-growth scale-ups – is usually provided by specialist lenders such as BOOST&Co. Loans can be structured to suit the borrower and tend to be priced individually, depending on the needs and circumstances of the business (for example, companies at an earlier stage of their development, or with a faster cash-burn rate, will normally pay more).
Venture debt is available earlier in a business’s life cycle and in larger amounts than loans offered by traditional banks, which is why this type of funding is particularly effective for fast-growing SMEs. Specialist venture debt lenders want to see an established business model and clear prospects for growth, but do not require a firm to have reached profitability or to demonstrate positive cash flows.
Moreover, venture debt products do not usually require borrowers to put up collateral against their debt, which is secured by a warrant instead. You can find out more by reading BOOST&Co’s guide to venture debt.
What we need
We are committed to investing in your company’s success, so we are interested in current and expected performance, rather than historical financial performance.
We want to know about your business model, how you win your clients, your targets for growth and how you plan to achieve them. We will then assess your firm’s enterprise value and future prospects for growth.
Although we are comfortable supporting businesses that are yet to reach profitability, we want to see existing revenues of £2m and a clear demonstration that the company is on its way to profitability.
What you can expect from us
Every application for a loan from BOOST&Co is processed by people, not machines.
After you have submitted an application, our experts will quickly gain a thorough understanding of your business, which helps us to assess how much we can lend. We will then tailor your venture debt after further discussions with you.
The process usually takes six to eight weeks and our expert team will support you every step of the way.
The essentials
Are you eligible?
- Proven business model
- Revenues of £2m+
- High growth
- Profitability not required
- Can be VC-funded
Our terms
- 1%-2% upfront fee
- 10%-12% interest rate
- 10%-15% equity kicker
- 0-12 months interest-only
- 26-48 months amortisation
Customise your loan
- Clarity on use of money
- £1m-£10m loan amount
- Tranches to suit your needs
- 12-48 months’ duration
- Cost depends on overall risk profile
