Alteria Capital

“We price the loan in the mid teens and the balance portion of it, the return that we expect, we get it through a contingent sort of a payout as part by taking some equity kickers.”

“So the debt is generally structured as a medium term loan. It's two years to three years depends with every structure. The loan is always a monthly repayment and monthly amortization, and the intention of that is to lower the burden on the company.”

“Our, you know, underwriting really starts with looking at, you know, who the investors are and you know, how much has gone into the company? How deep are the investors pockets to keep supporting the company when they need it? What is the path forward for the c…”

“The two safest times to lend in our opinion are one is when the company is a large, you know, it's a mature adult, and the other time is when it's a small startup that is working very closely with the VC and being protected by the VC.”

“The right time to engage for the venture debt, conversation is really when a company is looking to close a series A round or beyond. That's a starting point for us. And a series A for us is anytime a company raises three to four million dollars of institutiona…”

“So in a sense, we think of venture debt as a way to extend the cash flow runway for the company involved. And in a way it helps to protect dilution and valuation.”

“For us on the debt side it's not so important to be able to see, look out five years and pick the winners. That's not how we would underwrite. How we would underwrite is we need to necessarily be more short term in how we think about the next round coming toge…”

“And the expectation is that we will make a slightly upwards of 20% kind of returns in this business to compensate us for the risk we take.”

“The essential condition for us is that the company have a strong set of institutional VCs that can sort of guide the company and fund the company through its difficult times.”

“The loans are structured without sort of encumbrances on the personal property or the assets of the promoters. We are secured lenders in the company. So we come at the top of the table in that sense. You know, we take the assets of the company as we take a lie…”