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by suhpreme
1924 days ago
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Great point - it’s hard to appreciate just how different debt financing is vs equity until you’re in it yourself. Unlike VC's, debt investors are optimizing for 0% of their investments to fail. This makes its way into the contract's negotiation process and final structure/requirements. Our vision is to power the end-to-end debt financing process. We’re focused today on post-close monitoring/reporting, but our next module will be exactly what you’re asking: the negotiation + close of that contract. We’re well aware of this pain-point: growing startups can’t afford the 6-9 months it takes to get their money (after already agreeing to partner with their debt investor!). Fortunately there’s strong incentive alignment at this point to put that money to work. We also think our current reporting/monitoring work will be leveraged to streamline that process (a lot of reporting requirements come up during due diligence / negotiation). Finally, it’s a natural product extension since we’ll help you close your facility then can automate your reporting immediately upon close. |
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