Venture Debt and Convertibles

Clients appreciate the strength and breadth of our fully integrated debt and equity experience and expertise. They also praise our ability to find diverse solutions according to their needs. When a normal equity raise is not the preferred route to finance venture-backed companies, we are experienced in advising clients who may choose to use alternative sources of finance, including Venture Debt, Convertible Loan Notes or Advance Subscription Agreements to bridge equity rounds.

We have good relationships with the key providers of Venture Debt in the market and an excellent understanding of the commonly used structures and terms and how best to negotiate both the debt element and any related equity instrument.

We regularly advise on advanced subscription agreements (ASAs or SAFEs) and convertible loan agreements. We understand how to manage commercial imperatives and expectations and how to structure these instruments to ensure an efficient funding process that will work when it comes to the time to convert. More recently we have advised numerous clients taking a British Business Bank’s Future Fund-matched Convertible Loans and the implications on conversion and exit.

Recent Experience

  • Retail technology client on successive venture loans from Silicon Valley Bank
  • E-sports client on venture loan from Bootstrap
  • Retail technology client on venture loan from Columbia Lake Partners
  • Hospitality client on cross border venture loan from Silicon Valley Bank
  • Technology client on venture loan from Kreos
  • Machine learning technology client on venture loan from Columbia Lake Partners
  • E-financial services client on venture loan from Silicon Valley Bank
  • Telecoms client on venture loan from Kreos
  • Future Fund convertible loan applications for a variety of technology businesses, including VC-backed companies
  • Conversion of Future Fund loans on several future fundraisings and exits
  • Space technology business taking investment from a US fund via an advanced subscription agreement
  • UK investors on a convertible loan note into a B2B payment platform
“Hugh and the team at MH gave us an excellent and timely advisory service on a cross border debt and equity finance transaction. They also understand the importance of relationship building.”
Corporate Finance Officer Asia