Ireland ยท Medical technology
A profitable but early stage medtech business wanted to fund a sales team expansion without giving up a board seat or setting a valuation it thought was too low.
The company had reached recurring revenue of several million euros with strong gross margins, but was still small enough that most equity investors wanted board influence disproportionate to the cheque size on offer.
The founders had already run one funding process that stalled on valuation and did not want to repeat it under time pressure.
We looked at the recurring revenue base and concluded a revenue based structure would price more fairly than early stage equity, since the business was already generating cash.
Three specialist revenue finance funds were approached with monthly recurring revenue data and customer retention figures. We negotiated the repayment cap down from an initial multiple that would have made the facility uneconomic.
A EUR 5m revenue based facility completed in ten weeks, repaid as a percentage of monthly revenue with no fixed schedule and no board seat.
The sales team expansion was funded in full, and the founders retained their full equity position going into a later, better timed funding round.
Details are anonymised. Figures are rounded and identifying information is removed or altered to protect client confidentiality. Past transactions are not a guarantee of future outcomes.
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