Bridge to your next equity round
Extending your runway allows you to improve your key metrics and therefore increase your valuation at your next equity round
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Klymb is a
investment bank in venture debt advisory.
We support successful tech founders on their journey to innovate and scale.
2x
of your ARR in funding
12
Weeks to funding
€3M
Entry ticket
Our Expertise
At the service of your company's venture debt financing
Europe's deepest network of venture debt funds
Will get you the best offer possible on the market
An in-depth analysis tailored for venture debt funds
Control the narrative to rouse the appetite of those funds
A clear understanding of the investment thesis and risk appetite of each fund
To improve your chances to obtain a great offer and to fasten the process
An in-depth knowledge of venture loan term sheets
To organize the auction and get you the best terms possible
Benefits of venture debt for founders?
Almost no dilution
No board seats
Fast access to funds
Gain leverage at your next equity round
Avoid down rounds
Extend your cash runway
Process to raise in Venture Debt
We implement a proven strategy to get you the best terms on the Venture Debt market and we stand with you side-by-side until closing and the money hits your account.
Process in Venture Debt
We implement together a proven strategy to help you get the best terms on the Venture Debt market and we stand with you side-by-side until closing and the money hits your account.
1
Teaser sent to relevant funds
Once we get access to your data, we start our mandate by sending a short teaser to our network of funds rouse their appetite for your business and estimate the potential opportunities.
Once we get access to your data, we send a teaser to our network of funds to rouse their appetite for your business and estimate the potential opportunities.
2
In-depth analysis of your company
In the mean time, we start to crunch your financial and business data (captable, balance sheet and income statement, debt contracts, customer base and market depth).
In the mean time, we crunch your data (captable, balance sheet and income statement, debt contracts, customer base and market depth).
3
Defensive arguments
Venture Debt funds do not have risk appetite than VC funds since they cannot get the same return. It is therefore important to emphasize the mission criticality of the business and its stickyness even more than its growth potential. A VD fund should be able to answer "yes" to the question "Will this company still be in business in 5-7 years?".
A Venture Debt fund should be able to answer "yes" to the question "Will this company still be in business in 5-7 years?".
4
Coaching to shine in investor’s meetings
To convince Venture Debt funds to invest, it is important to prepare yourself for the main presentation meeting. We coach you for all the strategic questions that you will have to answer.
We coach you for all the strategic questions that you will have to answer to convince a fund to invest.
5
Meetings with our network of funds
We have preliminary meetings with the interested funds in our network to measure their appetite and areas of concern. We schedule and participate in the main meetings alongside you to make sure that the company shines.
We schedule and participate in the main meetings alongside you to make sure that the company shines.
6
Organizing the bidding process
As we go over the organized meetings, we will start to collect the Term Sheets from funds that want to participate in the bidding for the company. From this point onward, it is crucial to remain in control of the timetable and to define a clear schedule until closing for each remaining steps.
We collect Term Sheets and enforce a strict schedule from the negotiation phase until closing.
7
Negotiating the Term Sheets side by side
As we receive Term Sheets, we will be able to short list the most promissing ones and start to negociate. Venture Debt contracts have several strategic clauses (interest rate, warrants, interest only period, facility trigger...). Two Term Sheets will often be quite different and this gives us leverage.
We leverage the differences in Term Sheets received to get you the best final offer.
8
Due diligence with the winning fund
We remain committed until closing. Therefore, we will help you draft any additional documents that would be required during the due diligence to make sure this last step is also a success and the funds land on your account shortly.
We remain end zone during the due diligence to make sure this last step is also a success and the funds land on your account shortly.
When should you raise Venture Debt?
We accompany you through the entire funding process to ensure the best results.
Extend your current equity round
When you raise in equity, it is the most opportunistic time to raise large amounts of venture debt since the company support from its investors at that time is obvious.
Acquire another company
Funding an M&A transaction with debt is usually cheaper than equity which carries in the long run a much higher expected rate of return.
Accelerate international expansion
One of the best reasons to raise venture debt is to boost customer acquisition usually by expanding to new geographies with a promising demand.
Press review
An overview of today's Venture Capital and Debt environment.
“If your plan is to raise money in the next 6-12 months, you might be raising at the peak of the downturn. Remember that your chances of success are extremely low even if your company is doing well. We recommend you change your plan.”
05/22
“Significant inflation and subsequent increase in interest rates has (...) caused the repricing we're seeing now (…) We expect startups to get creative on ways to extend runways (…) taking on non-dilutive financing such as venture debt.”
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05/22
“Startups that rely on VC cash are, unsurprisingly, feeling the pain (…) Pessimists note that VC slumps take years to bottom out”
06/22
“As founders get savvier about fundraising options, they’re increasingly looking to raise debt (...) and European debt funds are raising larger vehicles to satisfy their appetite”
08/22
“Debt remains a small slice of total venture funding, but its share of the market is increasing. Withinterest rates low, venture debt increased significantly over the past several years”
09/22
Press review
An overview of today's Venture Capital and Debt environment.
Everything you need to know about Venture Debt
And related topics to understand today's funding environment
Meet our team
Two partners united to help your company strive.
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