Boost&Co Lends Earlier and in Larger Amounts Than Traditional Banks
Lance Mysyrowicz · EP 320: With a $150M War Chest, He Gives SaaS Businesses Friendly Loans · Jun 9, 2016 · at 1:45
Lance Mysyrowicz, founder of Boost&Co, explains the firm's growth loan model for tech SMEs compared to traditional commercial banks.
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“Boost&Co funds early stage High-tech companies through loans. So we lend money to these companies earlier in the development of these companies than the banks, or we lend them more money than the banks. And against that, we get a higher remuneration than the banks.”
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“We're happy to waive the fee, but it'll have a impact on the interest rate. So the way we think about it is how much IRR or how much profits in general are we going to make on the loan? So if you want zero fees, I'm more than happy to waive it, but it'll be tr…”
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“I would always prefer to do a smaller deal and have a small risk exposure to all the companies in my portfolio than to concentrate my portfolio into one or two investments. Because, I will never make a 10 X or a hundred X return on a loan.”
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“In my life probably a hundred, but at boost we're up to about 25 deals now and call it about a hundred and twenty million dollars.”
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“We have put in one point two, five million pounds. So about one seventy five million dollars.”
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“We make our money in three different ways. Fees, interest, and warrant. So fees is, let's say one to two percent of the amounts that we lend. Interest rate is anywhere between eight percent and 12% of the money capital outstanding on the loan and then the warr…”