Rather than add to the endless analysis, rumors and FUD regarding SVB, Signature and other banks, we’ll answer the primary question tech companies and their venture investors are asking us: is Vistara pulling back or leaning in?
We believe in the enduring value of high-quality enterprise technology and technology enabled services companies, so are very much leaning in and have made multiple growth debt and growth equity investments in the face of the recent noise. Last week we funded two new investments, and over the weekend arranged to fund payroll accounts for two existing portfolio companies. As management teams and their boards plan for the future and desire certainty, existing deal discussions have accelerated and we are responding to heightened demand especially for stable, longer duration term and convertible debt structures.
We hope SVB, Signature and the other banks that service technology companies continue to do so. Access to working capital and bank services for growth focused companies are often difficult to attain from the largest banks, and nearly impossible for those who are bootstrapped or haven’t received significant equity funding from big venture funds familiar to the banks. We view bank venture debt such as ARR based lines of credit complementary to the Flexible Growth Capital provided by Vistara – interest-only term debt, convertible debt, growth equity, and combinations of each – and are wishing our friends at banks not only survive but once again thrive. Also wishing everyone a far less stressful weekend ahead!
About Vistara Growth
Vistara Growth provides highly flexible growth debt and equity solutions to leading technology companies across North America. Founded, managed, and funded by seasoned technology finance and operating executives, “Vistara” (Sanskrit for “expansion”) is focused on enabling growth for the ambitious entrepreneurs we invest in, our investors, our people, and the communities we operate in. For more information, visit vistaragrowth.com
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