FINA V CAPITAL
Our Expertise
Fina V Capital: Venture Debt for Startups
Access to capital is the paramount concern of emerging growth companies. First and foremost, a startup must secure the proper amount of capital; too little and it may fail to thrive, too much and it may become bloated and unable to grow efficiently. Cost is critical as well—many an entrepreneur and investor have built successful companies only to find that the fruits of their labor have been diluted significantly along the way.
These concerns have led to demand for supplemental forms of financing that provide startups with the capital they need, at a cost that makes sense. To meet this need, venture debt has emerged as an integral part of the entrepreneur’s toolkit. Venture debt is a form of debt financing for venture equity-backed companies that lack the assets or cash flow for traditional debt financing, or that want greater flexibility. A complement to equity financing, venture debt is generally structured as a three-year term loan (or series of loans), with warrants for company stock. Typically, venture debt is senior debt that is secured by a company’s assets or by specific equipment. Overall, venture debt is a form of “risk capital” that is less costly than equity when structured appropriately.
As a partner at a leading venture firm, I have seen firsthand the benefits of venture debt. I have personally raised millions in capital to emerging growth companies since 1995, and have witnessed instances where the use of venture debt has increased shareholder value over $1 billion for startups.
Achieving success together
Fina V Capital is passionate about the success of our portfolio companies, and that passion is reflected in the results we achieve together. We are known for the close working relationships we build with the management and the Boards of Directors of our companies, and the depth of our commitment to helping them reach their business milestones, from launch to liquidity.
Independence. Fina VC is not regulated like a bank. Fina VC is a private partnership, which gives us crucial independence that our independently minded portfolio companies want and appreciate.
Flexibility. The most important difference is the flexibility of our products. We can tailor our investment to your specific needs and cash flow requirements. We understand that the road to success is not always smooth. As a Fina VC portfolio company, you can count on us to stay close to your business to help you, even through tough times. This flexibility, combined with our competitive pricing, gives Fina VC the unmatched ability to provide the kind of financing support you need, when you need it.
Experience. The Fina VC team has over 20 years experience of venture lending in the industry. Our founder Keith Gilabert has worked in the industry since 1994 raising capital to venture backed startups. Each of the managing directors at Fina VC has substantial experience in financing or managing venture backed start-up companies. This experience allows Fina VC to customize financing solutions for the best start-up companies in ways that provide true runway extension.
Loyalty. While our products are flexible, our commitment to your company is fixed. We focus on long-term success, just as you do. Once you become a Fina VC portfolio company, we stay the course through good times and bad. We take a long-term approach to investments, and take a deep interest in your mission, an understanding of your business, and a strong belief in your ultimate success.
Risk taking. Unlike banks, we believe there is opportunity in risk because we have the experience to appropriately judge risk and an investor base that supports our approach to investing. We take an entrepreneurial, rather than a "credit analysis", approach to evaluating risk. Like a venture capitalist, we are investing in your future potential based on your current strengths.