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SEED Venture Finance typically invests
between $250,000 and $1.25 million, although larger transactions can be
accommodated through a co-investment partnership with an other
financial institution. Each transaction will be uniquely structured to
meet the specific situation. However, the terms below are
representative of the typical structure of SEED Investments.
- Principal amount of $250,000 to $1,250,000 - Larger amounts can be syndicated
- Interest coupons of 12% - 14%
- Up to 2 year interest only period
- Nominally priced and detachable warrants,
or a similar equity-related security, representing a minority ownership
position in the borrower
- Final maturity not to exceed 7 years
- Amortization will be in amounts sufficient to result in not greater than a 30% balloon payment upon final maturity
- A first or second lien on all assets, and in some cases a pledge of stock
- 2%-3% processing fees
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