Institutional adoption

October 3, 2022

As our Series B is slated to close soon, we have the question of our venture debt outstanding that we need to figure out what to do with. The terms on the $[ ] we raised via our platform stipulated that the debt would have to be refinanced either when we close our Series B or by December 15th, whichever one comes first. We have been actively looking towards institutional venture debt providers to take over the debt in order to extend the maturity out much longer and reduce the exposure our platform investors have in the deal.

Thinking through this process, there might be an opportunity to get some strategic benefit out of this as well. If there's an institutional venture debt provider who would be willing to take over our debt, they must also be in a position where they are underwriting other venture debt positions as well. Why not try and upsell them on our software suite and have them not just be an underwriter on our platform? With that, I'm excited to share that we have our first potential bank client and their first deal being the syndication of our venture debt.

There is still quite a bit left to do here to officially get them on board (due diligence, term sheet negotiations, getting approval from the investment committee,  etc.) but the work is going to be done to try and create a structure here for us and this deal that can be scalable for future deals this bank wants to underwrite and syndicate in the future.

We've been talking a lot about how institutional adoption of our software solutions, particularly from banks, is the holy grail and this is as good an opportunity as any to show the world just how powerful what we've built can be 💪