In an ever-changing world, innovative entrepreneurs are always looking for funding, from pre-seed to series B.
The entrepreneurs are often well able to raise funding themselves. This is because with dedication and passion they can convince audiences of the usefulness and necessity of their solution to existing problems.
The pain and gain is clear. The VC often speaks the same language. The start-up continues to grow, the proof-of-concept phase has been successfully completed. The revenue model has been tested and works. There is exponential growth. And now?
The start-up becomes a scale-up
The next step
The start-up becomes a scale-up. The scale-up can stand more on its own two feet. Seed capital and/or loans are converted. But there is an increasing need for capital to further support growth. Assets must be financed over the long term. Growth and working capital needs can be financed on a short-term basis. These loans are tested against financial parameters (the most well known being the DSCR).
The go-to financier for this is the banks. As a scale-up you have a track record. But the bank seems to speak a different language, which means that a miscommunication and a rejection are lurking. Impact Finance wants to do something about that.
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