Everything about Growth Debt

Non-traditional form of financing for venture-backed companies seeking minimally dilutive capital to fund their ongoing growth and expansion

Go to about us section gif
Everything about Amplify
Growth Fund
Everything about Amplify
Growth Fund

GROWTH DEBT

Specialized form of financing for venture-backed companies seeking minimally dilutive capital to fund their ongoing growth

Meet founder of new Reload Mode our future Unicorn and top agency
Specialized form of financing for venture-backed companies seeking minimally dilutive capital to fund their ongoing growth.Specialized form of financing for venture-backed companies seeking minimally dilutive capital to fund their ongoing growth.
Go to about us section gif

Why Growth Debt?

Growth debt empowers founders with non-dilutive capital, cost-effective financing, flexibility, and enhanced credibility, safeguarding their growth potential and equity.

Unlike traditional bank loans, growth debt is flexible and often structured as a hybrid instrument that combines debt and equity features.

What are some of the key terms?

Typical key terms would include:

Amplify benefit icon

3-4 year term loan

Amplify benefit icon

Flexible amortization

Amplify benefit icon

$3M+ loan amount

Amplify benefit icon

2-3 tranches

Amplify benefit icon

Warrant component

What does it typically look like?

A Typical arrangement would include:

Amplify benefit icon

Hybrid structure blending debt and equity

Amplify benefit icon

3-4 year senior loan with flexible amortization

Amplify benefit icon

$10M average loan amount

Amplify benefit icon

Positive and negative loan covenants

Amplify benefit icon

Warrant component providing lender option to buy minimal shares upon an imminent liquidity event.

What does it typically look like?

A Typical arrangement would include:

Amplify benefit icon

Hybrid structure blending debt and equity

Amplify benefit icon

3-4 year senior loan with flexible amortization

Amplify benefit icon

$10M average loan amount

Amplify benefit icon

Positive and negative loan covenants

Amplify benefit icon

Warrant component providing lender option to buy minimal shares upon an imminent liquidity event.

How can it be used?

Capital Expenditure

Capital Expenditure

Working Capital

Working Capital

Acquisition

Acquisition

Growth

Growth

What are the benefits?

Fuel Growth

Minimize Dilution

Extend Cash Runway

Improve Liquidity Profile

Reduce Cost of Capital

Reduce Corporate Income Tax

Maintain Control

Venture Capital v/ Growth Debt

Venture Capital

Growth Debt

Equity investment

Debt investment with warrants

Values can fluctuate

Value is primarily fixed

Returns have high variance

Returns have limited variance

Returns via liquidity event

Returns via cashflows & liquidity event

Junior on balance sheet

Senior on balance sheet

Returns driven by equity value

Returns driven by cash interest, return of principal & equity value

Venture Capital

Equity investment

Values can fluctuate

Returns have high variance

Returns on liquidity event

Junior on balance sheet

Returns driven by equity value

Growth Debt

Debt investment with warrants

Value is primarily fixed

Returns have limited variance

Returns reliant on company cashflows & liquidity event

Senior on balance sheet

Returns driven by cash interest, return of principal & equity value

Equity vs. Debt Calculator

Fundraise Amount
$0
Pre-money valuation
$0
Post-money valuation
$0
Exit Valuation
$0
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Founder Stake %
$%
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Loan Amount
$0

*for illustrative purposes only.

Debt Tenor
3 Years
Interest rate annual
10-20%
Warrant Amount
2% equity stake

of pre-money valuation

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Below you can calculate a founder’s equity stake savings when raising debt capital in lieu of an equity round.

Founder stake post equity round
16%
Founder dilution post equity round
4%
Founder stake with debt
19.61%
Founder dilution with debt
0.39%
Annual Cost of Equity
0%
Annual Cost of Debt + Warrants
0%
19.61%
Forgone Equity Stake %
$3,607,843
Forgone Equity Stake $

FAQs

What types of companies are eligible?

We are generally sector-agnostic and seek out technology driven companies approaching or having achieved profitability, with a proven track record of growth and a resilient business model.

How can my company use the funds?

Our funds can be used for various purposes, including working capital, expansion, acquisitions, technology investments, and other growth initiatives.

What distinguishes your growth debt from traditional financing options?

We provide a flexible approach, with an emphasis on tailoring to the unique needs of our borrowers. Additionally, our process is generally expeditious relative to that of traditional financiers.

What geographies do you target?

Our target region is MENA with a focus on the GCC, but can selectively partner with global businesses looking to expand into our region.