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Venture Debt Specialists

Historically, venture debt was provided only by select banks and funds alongside a recent equity round.


Today, broader use cases of venture debt exists in the market designed to serve those companies in between funding rounds.


When utilized appropriately, venture debt can reduce dilution, extend a company’s runway or accelerate its growth with limited cost to the business.

$2MM +
Starting Capital Ask
$3MM
Minimum Revenue
27
Industries & Sectors Served
26
Transactions in 2021
What we do
Our team works with growth-stage companies to secure non-dilutive capital while avoiding dilution through equity raise. We assess where clients fit in the market and shoulder the workload of credit review and approval processes to deliver fast, favorable capital solutions from our network of trusted venture lending partners.

We know where companies succeed and where they meet friction in securing Venture Debt. We streamline the process and leverage our relationships with lenders to secure optimal terms, increasing chances of a successful and timely close – without the traditional need for equity co-investment. 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.
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 an 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 you need 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.
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 to companies, allowing them the 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 as to not tie up working capital or equity funds.

Purchase Order Financing

Finance the materials & labor associated with order fulfilment to meet customer demand.

Project & Contract Financing

Finance against the long-term cash value of contracts to fund the fulfilment 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.
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 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
1
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.
2
Reviews
Based on capital need and company profile, we outline the most compatible lending partners to pursue, walking Management through the options and determine best path forward.
3
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.
4
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.
5
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.

Testimonials

Contact Us
info@5thline.co
265 Franklin St. Suite 1702
Boston, MA 02110