Funding Use Cases

$5M-$30M Investments to Fund

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Growth Initiatives

Below are a few examples of the types of growth initiatives we support with flexible financing solutions.

Expansion Runway Extension Refinancing Aquisitions Liquidity Evolutions

Expansion

Funding organic growth initiatives through increased investment in existing operations. Examples and benefits include:

Accelerated go-to-market and new customer acquisition
Faster achievement of product roadmap and capabilities
Bolstering the senior management team
Supporting strategic partnerships

We invest as Growth Debt, Growth Equity, or combinations thereof to enable Expansion. Below are example use case portfolio companies, click to learn more.

Example Portfolio Use Cases

Runway Extension

Funding for additional time and/or achievement of milestones to optimize the next equity financing event or exit. Benefits and examples include:

Cash buffer to negotiate more optimal equity/exit terms including being able to ride out any temporary adverse market conditions
Time for deployment and revenue recognition from new larger customer signings
Time to achieve technical or other strategic milestones that would materially enhance valuation
Time neutralize potential value detractors (e.g. loss of a key customer, slowing growth, key management changes)

Vistara’s Growth Debt solutions have proven highly effective in helping extend runway for our companies. In certain cases, our Convertible Debt structures have both extended runway and served as a lead for the next round of equity financing.

Example Portfolio Use Cases

Exited

Refinancing

Funding to replace existing maturing or restrictive debt facilities. Examples and benefits include:

Resetting of covenants and overall terms with a new growth-oriented partner providing longer term, non-amortizing committed capital
Providing additional debt capacity based on current and projected growth profile
Lowering overall cost of capital through our willingness to combine senior bank financing with our subordinated debt.

Our highly flexible Growth Debt facilities are tailored to support growth.

Example Portfolio Use Cases

Acquisitions

Funding solutions to acquire companies or key assets to accelerate strategic objectives. Examples and benefits include:

Acquisitions to achieve greater revenue scale, geographic expansion, or enhancements to product or intellectual property portfolio
Flexibility and certainty through “standby” facilities that enable companies to target and negotiate acquisitions knowing funding is committed
Supporting international acquisitions which are often difficult for domestic banks to finance
Ability to reach leverage levels that require appreciation of pro forma combined potential rather than reliance on historical results

We have experience investing as Growth Debt (including standby facilities) to support acquisition initiatives.

Example Portfolio Use Cases

Exited

Liquidity

Funding full or partial buyout of equity holdings. Examples and benefits include:

Allowing founders or investors to de-risk their positions through partial liquidity and play for additional longer-term upside
Buyouts of early shareholders who may not be aligned with longer exit timeframes
Buyouts of co-founders, former employees’ options or shareholders no longer aligned with the business
Cleaning up the capitalization table (and related share classes and rights) ahead of a larger financing event or exit

Unlike many debt providers, Vistara is open to enabling liquidity via its flexible Growth Debt and Growth Equity solutions.

Example Portfolio Use Cases

Exited

Evolutions

Funding to complete transitions in business model, revenue and/or product mix. Examples and benefits include:

Evolving from a services driven model to being more product oriented
Evolving the delivery and revenue model from perpetual licenses (on premise) to cloud-based recurring subscription contracts (SaaS)
Scaling an emerging high value area of business within a mature “legacy” business
Evolutions of senior management teams including transitions from founder led businesses

Most investors are uncomfortable with companies in transition or with diverging growth profiles within their businesses. We can invest both as Growth Debt or Growth Equity that provides patient capital and guided experience to complete a transition and enable a more attractive financial profile for traditional investors.