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Venture debt for founders

Debt Calculator

Growth Lending Calculator for Founders

Are you elligible to raise non-dilutive funding to boost your valuation while preserving your equity?

Estimate your non-dilutive financing potential

And measure what can a tailored loan offer add to your business?

Indicate Your Business Metrics

ARR (€ in millions) *

Revenue Growth (% yearly) *

Gross Margin (%) *

Monthly Cash Burn (€ in thousands) *

Current Runway (in months) *

Current Valuation (€ in millions) *

Your Ownership (%) *

Amount to Raise (€ in millions) optional

Klymb Advisory Service

Runway below 12 months: You should probably raise additional equity to qualify venture debt investors' thesis.

ARR warning: You need at least an ARR of €1m and it needs to be at least 12x your monthly cash burn.

You already raised a substantial amount of debt. If you want to refinance it, you can contact us below.

Report sent. If you do not receive it shortly, please let us know at yohan@klymb.co.

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You are among the most mature companies, and qualify for a more advanced lending product, offering lower costs and greater flexibility.
‍
If you haven't already, share your email here for a personalized estimate of your financing potential.

Simulation Highlight

We have ___ investors in our network matching your profile.

Target Debt Amount

Runway Extension

Valuation Upside

Preserved Ownership

Potential Investors

After-Tax Cost of Debt

Comparing Debt and Equity Financing

Your Direct Cost Comparison

Your cost of dilution is based on your preserved ownership of ___ and the new valuation of ___ at the end of your new runway of ___.

Debt Financing And Retained Value

The retained value corresponds to the avoided cost of dilution from debt financing. It grows as your valuation increases, highlighting its long-term impact.

Loan Conditions and Cash Impact

Loan Terms You Could Expect

Refer to the first FAQ below "What are the key debt financing terms?" for more details on each one presented above.

Your repayement schedule

As illustrated above, extending the interest-only period and loan amortization schedule is key for preserving your cash and allowing you to focus on growth in the short term.

Why do you need additional capital?

Extend your runway

Boost your valuation before your future liquidity event:
Equity Fundraising / IPO / Exit

International EXPANSION

Fund your working capital to expand your operations and capture new markets faster

strategic M&A

Acquire strategic partners or consolidate your market while preserving your cash

Get Expert Advice

Frequently Asked Questions

What are the key debt financing terms?

Amortization terms:

Interest-only: It is the first period of the loan where you only pay the interests and not the principal. It is meant to preserve your cash so you can focus on your growth.
Loan amortization: Following the interest-only period, it is the period where you will amortize the principal of the loan.

Price terms:

Interest rate: It includes the base rate of the lender and is often increased by a float (EURIBOR, SOFR...).
Arrangement and Exit fees: They are paid respectively at the beggining of the loan and at the end of the amortization.
Warrant coverage: It represents the percentage of a loan that can be exercised as a warrant at a future liquidity event. For example, with a loan of €10m and a coverage of 10%, the warrant would represent €1m.
See the FAQ below for more details on warrants.
Warrant price: It can be a discount applied at the next liquidity event, anchored on a previous valuation, and can include other mechanisms that will affect it.

Other terms:

Covenants: They can set specific conditions the borrower must adhere to during the loan term, such as maintaining certain financial ratios or restrictions on additional borrowing.
Default provisions: Defines what events can trigger a default, the remedies the lender can take and what is the cure period to rectify it before penalties apply.

Who can benefit from using this calculator?

The simulator is designed for founders, and VCs of tech companies. It is particularly relevant for the following sectors: SaaS, Fintech, Cybersecurity, Marketplace, Gaming, Biotech...

Whether you are leading or investing in innovative tech companies, this simulator helps you explore the benefits of growth debt, either as a complement or an alternative to equity.

By providing initial estimates of potential term sheets and illustrating the benefits of growth lending across various business models, this tool is meant to support informed decision-making and strategic financial planning.

How should I interpret the simulation results?

This simulator is designed to support founders and investors in their understanding of the debt landscape for tech scale-ups and help them:
- Challenge the key features of a growth debt term sheet you already received
- Anticipate the terms you can reasonably expect before launching a debt fundraising campaign in relation to your financial fundamentals
- Estimate how it would impact your cash flows and ownership

By exploring different financing scenarios, users can see how growth lending can complement other sources of funding to support business growth.

What other factors will impact the debt offer I can expect?

For a more precise estimate, it's important to consider additional parameters like:
- Business Model: (e.g., B2B, B2C)
- Customer Segment: (e.g., SMBs, Enterprise customers)
- Industry and Sector
- Detailed Revenue Metrics: Including revenue concentration, nature of revenuestreams, churn rates, and net revenue retention
- Cost Structure
- Cap Table

How do you measure the cost of debt and the cost of dillution?

The cost of debt measures all expenses associated with borrowing funds, excluding the repayment of the principal amount. This includes all interest payments and fees. However, the real cost of debt can also be lowered for profitable businesses as interests and fees are tax deductible.

‍Note: Longer terms will often translate to a higher cost of debt, but a lower annual cost. It is important to measure other metrics like the IRR of the loan, the impact on your Cash Flows and your expected return on the investment to identify the best opportunity for you.

The cost of dilution is calculated by determining how much your ownership would decrease if you were to raise the same amount of capital in equity instead of debt. Then, we estimate what this reduced ownership stake would be worth at the end of the extended runway period provided by the new capital. As the company's valuation grows, this cost of dilution can increase significantly, meaning founders could miss out on a substantial amount over time.

‍Note: This calculation relies on two key assumptions: stable growth rates and a consistent valuation multiple based on your ARR, which may not fully capture future market conditions.

What else should be considered when deciding on equity or debt financing?

When deciding between debt and equity financing, it is crucial to:
‍- Evaluate the True Costs: Understand all associated costs, including less obvious ones like dilution over time.
‍- Consider Strategic Goals: Align financing choices with long-term business objectives and ownership considerations.
- Assess associated risks: Debt financing introduces constraints that should not be overlooked. Key considerations include repayment terms, covenants like financial ratios, and default triggers along with their potential consequences. It's essential to understand that this type of financing is best suited for funding predictable outcomes, where future cash flows can be reasonably projected to meet debt obligations.
‍- Consult Financial Experts:Work with financial advisors or consultants to model different scenarios and assess the impact based on realistic assumptions..

What are the key considerations for a founder looking at a growth debt offer?

Growth debt financing can provide the necessary capital to accelerate growth, but it's crucial to thoroughly understand the terms and implications of the offer.
‍
- Interest rate: Is it fixed or variable? Is it competitive with market practice?
- Arrangement and exit fees: Will they severely impact on the cost of the loan? Is the coverage on the whole loan or only on the fraction withdrawn?
- Prepayment fees: How expensive is it to prepay the loan, for example to refinance it with better terms in the future when the company will have access to cheaper capital?
- Loan amount: Does it meet the requirements and is it flexible in terms of withdrawal to bear the cost of the loan only when the capital is needed?
- Repayment schedule: Does it align with your projected cash flow and growth timelines?
- Warrant: How does it impact your ownership and other shareholders?
- Covenants: Can financial or operational covenants limit future options for the company?
- Default provisions: What are the events of default, the remedies the lender can take and what is the cure period to rectify it before penalties apply?

You can read our venture debt report here if you want to learn more about the product and its key terms.

What is a warrant?

A warrant is a financial instrument that gives the holder the right, but not the obligation, to purchase a company's stock at a specific price (known as the exercise price or strike price) within a certain time frame or at a specific date. Warrants are often issued by companies as part of financing arrangements to provide additional incentives to investors.

In the context of growth lending, warrants are sometimes included in loan agreements (most often for non-profitable companies) to enhance the overall return for the lender. This means that, in addition to receiving interest payments on the loan, the lender has the option to purchase equity in the company at a favorable price, usually at a future liquidity event.

Want to learn more about venture debt?

Including key venture debt terms and learn how we can help you improve a standard market offer.

Contacts

By submitting this form, you agree to our terms of use.

Report sent. If you do not receive it shortly, please let us know at yohan@klymb.co.

Oops! Something went wrong while submitting the form.

Raise up to _ with _ investors in our network matching your profile.

Get Personnalized Advice on Your ___ Financing Strategy

By submitting this form, you agree to our terms of use.

Report sent. If you do not receive it shortly, please let us know at yohan@klymb.co.

Oops! Something went wrong while submitting the form.

Growth Lending Calculator for Founders

Indicate Your Business Metrics

ARR (€ in millions) *

Revenue Growth (% yearly) *

Gross Margin (%) *

Monthly Cash Burn (€ in thousands) *

Current Runway (in months) *

Current Valuation (€ in millions) *

Your Ownership (%) *

Amount to Raise (€ in millions) optional

Klymb Advisory Service

Simulation Highlight

We have ___ investors in our network matching your profile.

Target Debt Amount

Runway Extension

Valuation Upside

Preserved Ownership

Potential Investors

After-Tax Cost of Debt

Comparing Debt and Equity Financing

Your Direct Cost Comparison

Debt Financing And Retained Value

Loan Conditions and Cash Impact

Loan Terms You Could Expect

Your repayement schedule

Why do you need additional capital?

Extend your runway

International EXPANSION

strategic M&A

Frequently Asked Questions

Contacts

Raise up to ___ with ___ investors in our network matching your profile.

Get Personnalized Advice on Your ___ Financing Strategy

Let's fund your ambitions

Raise up to _ with _ investors in our network matching your profile.