StartupLoan! What's that?

A special loan given to startups that are not serviced by traditional banks and do not want to excessively dilute to VCs.

The loan comes with flexible repayment options:
- As a bullet, at the next qualified capital raise, or
- Monthly, as a % of revenues

We know that all it needs is 1 person to change an industry. And we are here to back him/her.



Whom do we fund?

We fund new economy startups that can either raise future venture capital and/or otherwise become a successful, sustainable enterprise.

Passionate founders

We back founders with passion, drive and a clear ability to see the future of their growth.

New economy businesses

Our capital is most likely to flow to startups that can keep track of their growth. We have no other criteria.

Positive Unit Economics

High contribution margins, low non-growth costs and sensible management.

Typical Loan Size & Terms

  •              
  •       INR 10L, upwards.
  •              
  •       18% interest & notional equity kicker(subject to startup's MRR       and choice of repayment method)

Benefits of StartupLoan

We help solve:

  • Risk of inadequate runway
  • Aggressive milestones that affect valuations when raising capital
  • Taking loan from relatives or friends
  • Concerns of excessive dilution
  • Advisory and access to our networks is a given
Extending Runway gives you more time to build the startup or pivot that maybe needed in the early stages based on market learnings.
A long runway gives founders more time to achieve milestones for an institutional round and thus get higher valuations.

Customers

Apply here

The way to get started is to quit talking and begin doing

Tell us about yourself and your startup:

Team

Hari Krishnan

Vignesh Ramanujam

HOW CAN WE PARTNER

If you are an early stage investor/accelerator/incubator or contributor to the startup ecosystem, we'd love to chat!

Refer-in

If you know a founder you like and would like to fund them in the near future i.e. would like the startup to validate a few areas or achieve certain milestones to qualify for your capital, you can refer them to us. We take referrals from VCs seriously and give them priority attention.

Dealflow

We showcase startups that we have helped, to early stage investors for their first round of fundraise (Refer-in startups are not showcased to other investors if specifically requested).

Frequently Asked Questions

Loans are typically returned at either the next fundraise, or monthly. This is agreed upon in the beginning.

Our capital has an 18% interest rate.

Depending on the repayment schedule and the startup's Monthly Recurring Revenue (MRR), we have a range of kicker options to suit. Please reach out to us or schedule a callback at info@startuploan.co.

  • We help startups when other sources of capital can't, or just want to wait and watch. StartupLoan fills a critical capital gap and serves to potentially increase the startup's valuation significantly. We believe that for the value our capital adds, in addition to our mentorship and advisory, a kicker can sometimes make the difference between whether we commit or don't.(e.g. 30% equity dilution at a very early stage – which if done after achieving some milestones can become a 10% dilution to insitutional VCs because of the growth achieved).
  • We give an option to the founder to buyback the equity kicker at a discount to valuation at fundraise (valid for upto 6 months post fundraise as well – which can be funded by founder salaries). This option can be extended to the startup investor as well (in cases of refer-ins or when founder recommends this).

Because it is a loan. It is what it is. :)

The loans are to be guaranteed by the founder and hence to be paid by the founder from salaries his next startup or job that usually one ends up with. We give flexible timeline upto 3 years to return the loan on a periodic basis. Return of loan ensures that only serious founders apply to us, there is a commitment and funds are judiciously used.

Yes we help startups before their fundraise, so we are flexible to accommodate such situations as long as our ticket size would help you. We are flexible with lower than usual equity kicker percentages in such situations.

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