iAccelerate: Closing a Venture Debt Deal for a Mid-Level Client
Diagnosed a client's capital need, sourced a venture debt firm, and closed a debt line while equity fundraising was still in progress
Aadi Bihani
Finance Research Analyst at INDmoney
From their time as
Investment Analyst
iAccelerate • 2024 - 2024
Overview
Aadi was managing fundraising advisory for a mid-level business at iAccelerate, handling both the equity and debt sides of the raise simultaneously. The client needed capital on a faster timeline than a standard equity process would allow.
The Story
Aadi was managing fundraising advisory for a mid-level business at iAccelerate, handling both the equity and debt sides of the raise simultaneously. The client needed capital on a faster timeline than a standard equity process would allow.
While the pitch deck and valuation model were still being finalised for equity investors, Aadi identified that a venture debt solution could address the client's immediate working capital needs without waiting for the equity round to close. He made the case to the client that logical, low-cost debt from a non-bank lender was the right bridge, and the client agreed.
He prepared a single-slide investment memo summarising the business and the ask, designed to generate interest quickly without requiring the full deck. He identified a Bangalore-based venture debt firm whose model was to assess businesses on their ability to service debt from existing cash flows, and reached out with the memo.
The firm ran the numbers, got on a call with the founder, and offered a deal: approximately one crore at around 8% interest, repayable over one to two years, with the option to renew the debt line after repayment. Aadi was present on the call and supported the founder through the pitch.
The deal closed, giving the client an ongoing debt facility while the equity process continued in parallel.