CI’s Venture Debt Fund helps early-stage and later-stage businesses obtain venture or mezzanine debt for capital expenditures and working capital. Funding amounts range from $150,000 to $2 million. The interest rate will typically be fixed between 6 and 12 percent for the life of the debt. Warrants are part of the overall pricing and range from 5 to 25 percent of the loan amount. The debt’s maturity usually extends from three to five years. Collateral will include a priority lien or, occasionally, a subordinated lien on the borrower’s assets.
Snapshot of common characteristics
CI seeks technology-based companies based in Connecticut or willing to move here. We look for innovators in our core areas of expertise: bioscience, IT, clean tech, photonics and advanced materials. While we’re flexible when evaluating a potential partner, we also look for:
Proprietary intellectual property, deep technical knowledge or a significant first-mover advantage
Early-stage businesses lacking positive cash flow, or later-stage businesses with positive cash flow
Companies with no significant assets to use as collateral