Percent’s ‘Business Loans’ Offer Transparent Access to Venture Capital Debt for Early-Stage, High-Growth, Venture-Backed Startups | News

Venture capital debt becomes the newest asset class available to investors in Percent’s Debt Marketplace which brings together all three aspects of private credit transactions – borrowers, underwriters and investors

NEW YORK, May 18, 2022 /PRNewswire/ — Percent, the platform powering the future of private markets, today announces the launch of Corporate Loans, which offers venture capital-backed startups a fast and transparent way to leverage options low-dilution risk debt financing – in an environment of slowing pace of growth-stage venture capital cycles. With its proprietary holistic algorithm, Percent’s platform can provide startups with more upfront capital, compared to leveraging their existing ARR. Corporate loans are a new asset class brought to Percent’s industry-leading platform, opening venture capital debt opportunities to accredited investors for the first time.

Venture capital debt is a $150+ billion market filled with high-growth, equity-backed companies. Previously, private companies looking for debt financing options to expand their footprint were stuck in a non-standardised, “you know it” deal flow environment. This new asset class on Percent will be a game-changer for VC-backed start-ups that have big vision and demonstrable traction, but still need growth funding to keep hitting KPIs and execute their roadmap. The launch comes at a critical time for the venture capital ecosystem amid a slowdown in venture capital funding. According to data from CB Insights [https://fortune.com/2022/04/08/venture-capitals-2022-slowdown-4-charts/]global funding fell 19% to $144 billion in the first three months of 2022, compared to last quarter, the largest quarter-over-quarter percentage decline in nearly 10 years.

“We designed this product for fast-growing, venture capital-backed companies like Percent, to provide other industry innovators and disruptors with easy access to debt financing alternatives that don’t take away a much of the ownership to the founders or shareholders,” said Nelson ChuFounder and CEO of Percent. “In addition to launching this product, we are also its first users – having garnered over $7 million in loan capital on our platform in March, which helped us expand our market presence and accelerate our product roadmap. Given market conditions and the overall economic environment, we believe the timing is perfect for this offering, which can allow a business to continue to meet customer demand between funding rounds, which have slowed. “

KEY BENEFITS FOR VC-BACKED STARTUPS

  • Price Discovery: Startups can raise capital based on current market conditions from Percent’s diverse investor base.
  • Little dilutive. The companies don’t have to cede much ownership as part of the deal.
  • In the shorter term. Shorter tenors are available than what is typically offered by subprime debt funds alongside a transparent market for ongoing refinancing.

MAIN BENEFITS FOR INVESTORS

  • High-yield, short-term investment opportunities to diversify a portfolio. Low minimums and fees.
  • Investments typically last until companies raise their next funding round, providing investors with shorter tenures. Higher default risk is compensated by higher returns.
  • Access to investments in the companies that shape our future.

“At Percent, we believe that a thriving and transparent marketplace can help other innovative companies like ours raise the growth capital they need and simultaneously provide existing credit providers with a profitable channel to easily find and syndicate the deal flow,” said Prath Reddy, President of Percent. “As always, our market-based pricing, credit transparency, transaction standardization and unparalleled customer support – hallmarks of our private debt marketplace – are standard with corporate lending.”

In the current environment of slowing venture capital funding and rising interest rates, Percent believes the time is right to offer venture capital debt as an asset class and product line. This launch is the next step in Percent’s ongoing transformation of private credit markets, as the fintech innovator brings public market standards and efficiency to this legacy market.

About percentage

Percent is the platform powering the future of private marketplaces. Founded in 2018, the company leverages proprietary technology, integrations and data to bring unprecedented transparency and efficiency to private credit transactions. Percent’s innovative ecosystem enables companies of all sizes to raise the most flexible debt capital at low cost through dynamic market pricing and standardized terms. To date, its platforms have powered over $850 million in trading volume in a multi-trillion dollar private credit market.

For more information, visit Percent’s website and follow the company on Facebook, Instagram, LinkedIn and Twitter.

Media Contact:

Victoria Castelbuono

JConnelly for percentage

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SOURCE Percentage