Our client, venture capital, invested pharmaceutical company, was looking for funds to extend its cash runaway and also strengthen its bargaining position between equity rounds.
For the expenses like working capital, equipment purchases, and software maintenance, the company wanted to raise $6M loan from debt financing.
ALCOR’s IB team met with the client, their promoters, and explained about the benefit of layering a line of debt over an upcoming equity raise.
The ALCOR’S team solicited proposals on behalf of the client from four independent global lenders who have expertise in working with venture-backed businesses. ALCOR was ready to create a competitive bidding state of affairs, which helped to drive the terms and rates of the proposals.
- Potentially enhance bargaining position for equity raise
- Extended cash runaway by more than 35%
- Raised venture funding with minimal dilution
- ALCOR’s IB team negotiated competitive repayment terms without penalties in the case of expiring the line.