StartupLoan! What's that?

A special loan given to startups that are not serviced by traditional banks and not optimally serviced by VCs due to stage etc.

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.

The various offerings are:


Offerings

1) Pre Angel/ Pre Seed Startuploan

2) Termsheet loan

3) Angel Round* Venture Debt

(* first external angel round from partnered list of angel funds/ networks)

4) Bridge loan for runway extension (min 10months)

5) Revenue based Financing*

* for startups with >5L recurring revenues p.m

Return timeline

As bullet repayment upon next fundraise

As bullet repayment upon current Termsheet fructifying

Monthly fixed repayments for 6 months

Monthly fixed repayments for 12 months

As bullet repayment upon fundraise

Monthly as fixed amount (repaid 1x in 12m)

Monthly as % of Revenue (2x to be repaid in 36 months)

For digital adspends from transactional revenues

Interest rate

18% p.a

18% p.a

18% p.a

18% p.a

18% p.a

18% p.a

NA

18%

Net Equity kicker

5%

0.25% to 0.5% based on binding/ non-binding signed termsheet

0.5%

1%

till next fundraise: 3.5% to 4%

1%

1%

NA

Agreement link

Agreement

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Annexures

Agreement

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Annexures

Agreement

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Annexures

Agreement

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Annexures

Agreement

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Annexures

Agreement

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Annexures

Agreement

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Annexures

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Annexures

Investment Bank tieup to raise funds (via partnership with www.idrivecapital.in)

Offered (without retainer and with nominal success fee)

Not Applicable

Offered (without retainer and with nominal success fee)

Offered (without retainer and with nominal success fee)

Offered Free (without retainer and without success fee)

Offered (without retainer and with nominal success fee)

Offered (without retainer and with nominal success fee)

Offered (without retainer and with nominal success fee)

Membership to Kickstartup founders community ( WA group )

Offered

Offered

Offered

Offered

Offered

Offered

Offered

Offered

Mentors access (Quarterly review on Zoomcalls)

Offered

Offered

Offered

Offered

Offered

Offered

Offered

Offered

Monthly MIS review(after initial preparation help)

Offered

Offered

Offered

Offered

Offered

Offered

Offered

Offered

Timeline for fund infusion after signing the Agreement

2 Business Days

2 Business Days

2 Business Days

2 Business Days

2 Business Days

2 Business Days

2 Business Days

2 Business Days

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

  •              
  •       upto Rs 20 lakhs
  •              
  •       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.

Startups


Biocalculus

Apply here

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

Tell us about yourself and your startup:

Mentors

Hari Krishnan

Fund Raising, Startup Journey

Vignesh Ramanujam

Silicon Valley Network

Arun Natarajan

Fund Raising, Competition, Exit

Vineeth Vijayaraghavan

Strategy, Technology

Vishesh Rajaram

Sales, Fund Raising, Exits

Sharda Balaji

Legal

Kiran Reddy

Vision, Values, Strategy

Ankit Sabharwal

Product

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 month on month as a small percentage of their revenues. This is agreed upon in the beginning.

18% annual.

Depending on the repayment schedule and the startup's Monthly Revenue, we have a range of kicker options to suit (right from 0.25% to 5%). Please look at the "Offerings Table" or write to us at info@startuploan.co.

  • We help startups when other sources of capital can't, or want to wait and watch. StartupLoan fills a critical capital gap and serves to potentially increase the startup's valuation significantly. (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 believe that for the value our capital adds, in addition to our mentorship, advisory, peer community learnings, and positive signalling of having gone through an institutional process, a kicker is definitely justified.
  • We give the Right of First Offer to the founder to buyback the equity kicker. This right can also be extended to the startup investor as well, in cases of refer-ins from a fund/ investor.

Because we ourselves want to pay it forward to future startups. ie the same 20L returned could enable another startup - and so on. As an entrepreneur, you also feel good about paying it forward to enable a new Startuploan to another future entrepreneur.

We look at the reasons for the failure (including the amount of time given to the startup by the founder, occurance of any excess personal expenses from the company funds other than nominal salaries etc) and at our discretion demand for return of the loan or write it off. The loans are to be guaranteed by the founder and hence, if we demand, to be paid back by the founder, it can easily be done from salaries from his next 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.

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.

Required Documents

Agreement Schedules to be filled