First-ever study reveals the importance of venture debt as growth capital for later-stage companies
NXT Capital's Venture Finance Group (www.nxtcapitalvf.com) today announced the release of the inaugural edition of the NXT Capital Venture Debt Index™. This first-of-its-kind analysis focuses exclusively on venture debt financings between Q1 2012 and Q2 2013. The Venture Debt Index™ reveals the important and growing impact of non-bank debt on venture-backed companies and markets.
Among other findings, the NXT Capital Venture Debt Index™ confirms that venture debt is an increasingly popular source of alternative financing for later-stage companies seeking growth capital. Among other findings, the NXT Capital Venture Debt Index™ confirms that venture debt is an increasingly popular source of alternative financing for later-stage companies seeking growth capital. Click here for an infographic and here for a white paper. Click here for downloadable charts.
Key findings of the NXT Capital Venture Debt Index™ include:
"We're very pleased to release the first quantitative analysis of venture debt's prevalence and impact in fueling the innovation economy," said Jan Haas, Group Head, NXT Capital Venture Finance. "The NXT Capital Venture Debt Index™ will continue to track the fund flows related to debt-based growth capital and assess its influence in funding the growth of venture-backed companies."
"The market has become increasingly educated about the availability and structural benefits of debt financing," continued Haas. "The Index reveals that debt is an appealing alternative for successful late-stage companies seeking minimally dilutive growth capital across North America."
The NXT Capital Venture Debt Index™ is a proprietary analysis of approximately 450 non-bank venture debt financings from the beginning of 2012 through the second quarter of 2013. It excludes loans made by regulated banks unless provided by a venture debt-specific bank affiliate. All benchmark venture capital data referenced above and in the Index is from the PwC/NVCA MoneyTree™ Report based on data from Thomson Reuters.
NXT Capital plans to update and expand the Venture Debt Index™ on a regular basis.
ABOUT NXT CAPITAL VENTURE FINANCE:
NXT Capital Venture Finance serves entrepreneurs by providing less dilutive, more flexible forms of capital. With offices in Boston and Silicon Valley, NXT Capital Venture Finance offers senior and subordinated term loans in the $1 million to $20 million range to emerging growth companies backed by venture capital and private equity firms, particularly those in the technology and life science sectors. Target clients range from emerging growth companies led by dedicated entrepreneurs to late-stage, proven businesses seeking more efficient growth capital. For more information, see www.nxtcapitalvf.com.
ABOUT NXT CAPITAL:
NXT Capital provides structured financing solutions to middle market and emerging growth companies, as well as real estate investors, through its Corporate Finance, Equipment Finance, Venture Finance and Real Estate Finance groups. Based in Chicago with offices in New York, Atlanta, Boston, Charlotte, Dallas, Kansas City, Minneapolis/St. Paul, Phoenix, San Francisco and Silicon Valley, NXT Capital targets senior financing opportunities up to $150 million with a hold size up to $50 million. For more information, see www.nxtcapital.com.
NXT Capital Carole Shifman, 847.433.4210 carole.shifman@nxtcapital.com