LEXHAM SECURITIES LTD

Lexham Securities Ltd is involved in helping innovative startups reach their full potential. Our investment in your business is more than just financial. When we commit to working with a client, we become partners and lend our full support behind their efforts to move their company forward. Contact us to learn more about our investment portfolio and latest success stories.

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What is venture debt and venture lending?
Venture debt (aka venture lending) is a type of alternative debt financing to traditional commercial banks, and offers the ability to customize financing needs to meet your specific company requirements without commercial bank regulatory mandates, restrictive cash deposits, or covenant package. Venture debt is complimentary to your existing venture capital equity investments and provides lower cost growth capital to further extend your runway to success. It is typically used to fund working capital, operating expenses, and growth initiatives of venture capital and private equity-backed companies. Unlike typical traditional bank lending, venture debt is available at all stages of company development from startups, to expansion stage, to high growth companies that do not have positive cash flows or significant assets to use as collateral.

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How does venture debt compare to traditional bank lending?
Venture debt is designed to be less restrictive, and far more customizable to your company’s unique needs than commercial bank financing. Debt doesn’t require that you deposit your operating account cash balances or have compensating balances as collateral to your loans, and there are no regulatory required restrictive covenants. Debt provides the ability to work through your growth challenges and restructure loans, unlike that of a regulated bank entity.

What are the benefits of venture debt compared to equity venture capital funding?
For companies at critical stages of development, debt can serve as a key financing option to foster growth, with minimal dilution of equity ownership. Our debt financing solutions are intended to complement equity.

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What are the primary uses of venture debt?
There is no “one-size-fits-all” approach to venture debt, and each partnership is approached with finding the best fit on a case-by-case basis, however, there are four common use cases for venture debt that showcase its benefit.

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