Anzu Venture Debt
Companies with revenue and positive cash flow have more choices for how to finance their growth than pre-revenue companies. For these companies, debt financing can be an advantageous alternative to adding additional equity to a company’s capitalization.
Anzu Partners provides term loans to companies with at least $5 million of annual revenue and positive cash flow (or a verifiable path to it). Anzu’s debt investment size ranges from $5-$15 million to a company, though Anzu may provide larger investment sizes by partnering with other capital providers.
Term Debt vs. Equity
- Lower cost of capital than venture capital
- Less dilutive (modest warrants are a standard part of a venture debt investment to align growth incentives)
- More accessible form of capital with underwriting that does not depend on M&A/IPO exit
- Reasonable flexibility on payback schedules
- Optional access to Anzu suite of portfolio support and technical resources on the same basis as our VC-backed portfolio
- Growth capital
- Capital projects
- Debt restructuring
- M&A financing
- In conjunction with an equity raise to improve dilution dynamics for the company
Anzu Revenue-Based Investments
Anzu Partners also provides revenue generating companies with non-dilutive growth capital in the form of a Revenue-Based Investment (RBI).
These investments are considered equity for accounting purposes, but are designed to be flexible to fill a gap between dilutive equity and term debt. Anzu’s RBI sizes range from $5-$15 million per investment and payback is based on a percent of a company’s revenue. Unlike debt, Anzu’s RBI investments do not have a maturity date.
For an example of how Anzu structures this type of investment, please click here to view the release from a recent $13M financing for a publicly listed company, Pivotal Systems (ASX:PVS).
Interested in Debt and Revenue-Based Investments opportunities?
Please submit a company questionnaire for us to review in order to be considered for Debt and RBI opportunities.