Ahead of the start of the Leeds Digital Festival on 18 September, Fresh Thinking Advisory has announced a specialist debt team, which is ready to help technology companies understand the funding market and secure the funding they need to grow.
The Leeds-based firm offers wide-ranging support to management teams as they access debt funding, often for the first time. Areas of expertise include venture debt, a form of debt financing specifically designed for high-growth startups and technology companies that may not yet be profitable but have proven their revenue model and are scaling quickly. Venture debt is typically offered by specialised lenders or venture debt funds that understand the unique needs and risks as a business scales from start-up to fully fledged tech star.
Commenting on the sector, Oliver Reece (pictured), managing director of Fresh Thinking Advisory, said: “Yorkshire’s tech scene is a jewel in the crown of the regional business community. It has quickly turned into a hub for investors looking for high-growth opportunities. Completing a deal successfully and figuring out funding options while preserving shareholder value can be difficult, so our experienced team is here to help business owners achieve their objectives.
“Venture debt is a less well-known debt product that helps pre-profit or pre-cash generation businesses scale a proven revenue stream without diluting equity value further. It can be particularly attractive in situations where new developers, marketing or other growth spend is required to secure new contracts and customers. The lenders providing these types of facility are sector specialists and understand that traditional lending metrics don’t apply, making them extremely flexible.”
Funding partners are critical for the success of tech companies. To attract funding partners, tech companies need to demonstrate strong potential for growth, a clear path to profitability, and a well-defined strategy for scaling their operations.
Fresh Thinking Advisory helps firms prepare for funding by developing a growth plan and value proposition that sets them apart from competitors, and explaining fully the implications that various funding packages bring with them. Investors often want to see a strong team with a proven revenue model. While rapid growth is attractive, investors need to know that the company has a sustainable business model that can generate profits in the long run.
The advisory firm helps companies seeking a wide range of funding options, both secured and unsecured, by offering impartial debt advisory services. The firm provides a whole market debt advisory offering and uses its expertise and network to help clients raise and re-negotiate debt funding. It uses a network of trusted specialists and alternative lenders developed over decades.
