1. What sort of financing does MMV provide?
- MMV provides venture debt financing to earlier stage and high growth companies that would not ordinarily qualify for traditional bank financing, or that require additional growth capital beyond what is available.
- MMV can provide a wide range of creative financing alternatives that can be tailored to meet each company's unique needs - For more information on MMV's financing products click here.
2. What are the benefits of venture financing?
- Venture debt financing provides a company with additional operating runway - giving it time to reach milestones that can allow equity financings or liquidity events at significantly increased valuations.
- Venture debt is risk capital but is less expensive / dilutive than equity.
- Venture debt financing is non-intrusive, fast and efficient to deploy - allowing entrepreneurs to remain focused on operating their businesses.
- A new financing partner means access to a new network of contacts and relationships. MMV works to leverage its networks and experiences on behalf of all its portfolio companies.
3. Does MMV require a Board seat?
- No. MMV does not look for representation on the company's Board of Directors and no changes to existing shareholder agreements are required.
4. How much will MMV invest?
- MMV typically looks to invest US$1.5 million to US$7 million per transaction. However, MMV has led transactions of up to US$10MM and will accommodate larger investment opportunities as required.
- MMV Financial's current capitalization allows for over $100 million of new investments to be made each year as part of a $400+ million investment program.
5. What type of companies does MMV invest in?
- MMV looks to invest in growth companies in the technology and life sciences sectors. Our portfolio companies range from pre-revenue companies to more developed businesses with substantive revenues and profits.
- Primarily we invest in venture backed companies. However, we have a broad mandate and will invest in companies that are privately held or publicly traded.
6. Does MMV require financial covenants?
- No. MMV does not require either financial covenants or personal guarantees.
- Also, unlike some financial institutions, MMV does not require depository or cash accounts to be established that may be used to offset the loan at the option of the financial institution.
7. My company has an existing bank operating line, will MMV subordinate?
- Yes. MMV has a long history of successfully partnering with senior lenders that provide receivables and inventory based loans.
8. What happens if my company takes on venture debt and later encounters financial or other difficulties?
- MMV's team has substantial industry experience, and understands that the road to building a successful technology company has its ups and downs. Accordingly, MMV has a history of supporting and working with its portfolio companies through difficult times rather than having a short sighted, recovery based, approach.
