5th Line Venture Debt

Venture Debt Specialists

We raise creative Non-Dilutive capital solutions for growth-stage companies looking to avoid equity dilution. Experts in where our clients fit in the debt markets, we shoulder the workload of credit review and approval processes to deliver swift, favorable terms
from our network of trusted venture lending partners.

We know the challenges companies face in raising Venture Debt. We streamline the process and leverage our relationships with over 75 different banks & credit funds to secure optimal term. Our expertise is in taking tougher credit profiles and structuring them for the right lenders to provide attractive terms. The end result is our clients secure funding and are able to continue driving toward their next phase of growth.

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$2MM +

Starting Capital Ask

$3MM

Minimum Revenue

Industries & Sectors Served

Over 100

Transactions Advised

Trusted Advisors to

See Our Clients

How We're Different

Our clients come to us with a story, a reason they're in the market and they need guidance. We work with companies that don't fit the typical 'Venture Debt' model for any number of reasons.

Our clients often come to us due to:

Older or 'Tired' Investors
You haven't done a major equity round in 15+ months. Investors may or may not be active or still able to fund the business.
Slower or Flat Revenue Trend
Your revenue may not be doubling each year, there might have been a recent pivot or trend issue in the business that has since been corrected.
Unique Capital Need
There's a specific need, like needing to fund a specific asset, acquisition or needing the most flexible terms for your profile.
Tight Liquidity & Runway
Runway is under 6 months, your equity prospects may not be as bright as you had originally planned and you're looking to extend your runway.

Areas of Expertise

Growth & Expansion
Adding additional cash to the balance sheet on top of equity funding to extend runway to break even or the next equity round, fuel sales, and grow overall business development.
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Acquisitions
Capital for acquiring another entity in the form of another company or another entity’s business assets.

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Working Capital
Freeing up capital tied up in accounts receivables, inventory or funding tied to contract fulfillment.
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CapEx Financing
Financing for capital expenditures including machinery, FF&E, computer & other technology-related hardware, etc. for the purposes of funding company growth.
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Capital Structures

Growth Capital

Adding additional cash to the balance sheet on top of equity funding to extend runway to break even or the next equity round, fuel sales, and grow overall business development.

Term Loans
Funded loans to the balance sheet to go right to work for companies with higher, more immediate liquidity needs.
Lines of Credit
Committed facilities designed to maximize flexibility for companies, allowing them access to capital without obligation to use.
Acquisition Financing
Capital utilized for the acquisition and ongoing operations of another business or businesses' assets that won't dilute like equity.
Refinancing
Replacing an existing higher-rate lender or older bank facility with friendlier terms and greater capital availability.

Working Capital Solutions

Freeing up capital tied up in accounts receivables, inventory, or funding tied to contract fulfillment.

Revolving AR
Lines of Credit
Capital against your accounts receivables to boost liquidity while you wait for customer payments.
Inventory Lines
of Credit
Finance the purchase of your inventory for sale so as to not tie up working capital or equity funds.
Purchase Order Financing
Finance the materials & labor associated with order fulfillment to meet customer demand.
Project & Contract Financing
Finance against the long-term cash value of contracts to fund the fulfillment of the services.

CAPEX Financing

Financing for capital expenditures including machinery, FF&E, computer & other technology-related hardware, etc. for the purposes of funding company growth.
Navigating the CapEx lending market can be challenging, knowing the right players, we are able to source and verify the terms on your behalf.

Benefits of CapEx Financing

100% Financed
Finance the entire purchase price of the assets, not just the discounted resale value.
Soft Costs Included
Typically 20-25% of soft costs like software & labor are included in the facility.
Non-Warrant
Don't give away equity as part of your equipment financing, CAPEX facilities are all-cash repayments.
Equipment-Specific Lien
The equipment is the sole collateral, meaning the rest of your balance sheet is entirely free and clear.

CapEx Specialities

Our clients tend to have unique capital needs

Robotics & IOT

Specialized tooling, molds and components are often financed by our robotics & IOT clients

Life Science

Finance specialty or off the shelf lab equipment and medical devices

Manufacturing

Unique or off the shelf equipment used to manufacture and assemble components

FF&E

Finance the acquisition of small items like furniture, fixtures & equipment

How We Do It

Evaluation

Our first step is working together with Management to understand the goals of the business. From there we conduct an initial review with our lending partners, pre-engagement, to determine market fit and assess prospective terms.

Reviews

Based on capital need and company profile, we outline the most compatible lending partners to pursue, walking Management through the options and determining the best path forward.

Negotiations

We review the opportunity in depth with our lending partners' credit committees. We handle the process of research, reviews, and cumbersome phone calls, working to bring the best terms and structures to you.

Term Sheets

Once delivered, we work through the terms with our lenders, providing feedback and working to negotiate and structure the offers best suited for you. Once negotiated terms are delivered, we review the terms with you, advising on the next steps in the process to move into diligence and funding.

Diligence & Funding

Terms have been accepted and the lender is in final diligence. Clients & lenders are directly engaged to move through this process, we remain involved to ensure the process is moving along efficiently.

Financial Operations

Strategic Finance

Testimonials

"5th Line helped us identify lenders, get into the conversation, and complete a debt raise in a historically difficult market. The access to capital helps us play offense and continue to invest in growth while many competitors cannot. James was a pleasure to work with and provided great advice and counsel throughout the process."
Gautam Kumar
Lower.com
"5th Line was a tremendous value-add to raising our debt financing in a time we needed it...We benefited greatly from their extensive network and strong relationships within the venture lending community."
Critical Mention
Mike Berman, Critical Mention COO
"We were in one of those tough spots, no one on our board had ever heard of alternative lending channels like 5th line, and more common debt was not going to be a fit for our situation. 5th Line way exceeded our expectations! James was well connected, brought us multiple solutions, worked fast, has very high integrity and his transparency developed immediate trust. In the end, we couldn't have asked for a better partner for our debt line, and we never could have sourced him without James' help."
Mary Ellen Beliveau, CEO
Knowledge to Practice
"James validated the dilemma I was facing and suggested we look for venture debt options. In a matter of days, James started setting up introductory calls with various lenders around the country and we closed on the debt facility in just a matter of weeks. Since then, we nearly quadrupled our ARR in two years and on 12/30/21 I was able to close on an investment with growth capital and a recapitalization at a great valuation. I paid off the lender and sent James a note of gratitude. Not only did 5th Line Capital really come through when I needed them the most, but it turns out they also brought me a fantastic lending partner."
Scott Shickler, Founder & CEO
7 Mindsets
"Working with 5th Line made identifying sources of financing simple, quick, and straightforward. I appreciated James’ involvement in the process and coordinating with different possible lenders. Would highly recommend working with him."
Cory Kidd
Catalia Health
"5th Line was a real value-add to raising our venture debt financing. We did not have a lot of experience among the team or the board with alternative sources of capital and James was a great guide through the process. In the end, we couldn't have asked for a better partner and facility to help us scale and would never have achieved this outcome without James' help."
Tosin Adesegha
Pathstream
“Working with 5th Line dramatically accelerated our debt-raising process by cutting out some of the most time-consuming steps in the process of sourcing qualified lenders. James presented us with several great term sheets in a matter of weeks and we closed shortly after that. Our lender has become a terrific capital partner to help us grow.”
Jess Gartner
Allovue

info@5thline.co

265 Franklin St. Suite 1702
Boston, MA 02110