VENTURE DEBT THE CCFG WAY

EFFECTIVE COMPLEMENT TO EQUITY FINANCING

THE VALUE OF VENTURE DEBT

The optimal time for a startup to have an equity raise is just after a significant milestone has been attained and commonly will provide a boost in valuation. CapConnect provides access to minimal dilutive capital to bridge a company to its next valuation increment.

Time
Valuation

Milestone

Increases

Valuation

Next

MiIestone

Acheivement

Equity Financing

at Higher Valuation

Angel/

Early

Financing

Milestone

BENEFITS OF VENTURE DEBT

FOSTER
GROWTH
EXTEND
RUNWAY
BOOST
VALUATION
STRENGTHEN
LIQUIDITY

TYPES OF VENTURE DEBT

SHORT-TERM BRIDGE FINANCE
ASSET BASED
FINANCE
REVENUE BASED
FINANCE

Venture debt is a form of debt financing for early stage angel backed or venture backed tech companies that lack the assets or cash flow history for traditional debt financing. By using venture debt, startups lengthen the time needed before a next equity financing giving the entrepreneurial team time to focus on growing the business. This solution enables emerging growth companies to achieve milestone(s) creating a more favorable valuation ahead of the next equity financing and minimizing equity dilution to existing investors and employees.

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