We’ll help you grow where other lenders don’t go.
We’re a fresh and resourceful lender, putting our capital to work in promising businesses.
Innovative companies often do not have access to sufficient financing to truly fuel their growth.
Banks do not move outside their well-defined credit boxes. Non-bank debt is available… but only for loan sizes of $20 million and above. Equity is hard to come by, and if it’s available that equity can prove to be incredibly expensive when the company goes on to enjoy exponential growth.
The situation is dire for those companies in need of financing between $1 to $20 million.
That is the gap. Our Gap Debt™ fund aims to fill it.
What is Gap Debt™?
Gap Debt™ is a debt product, reimagined for today’s rapidly evolving business environment.
We issue loans of up to $20 million to growing companies that have strong visibility into operating cash flows and their enterprise value.
When equity is available, it’s a cost-effective substitute or complement to venture capital because it minimizes the cost of dilution through the sale of equity/shares, while allowing borrowers to retain full strategic control of their business.
When no other long-term financing is available, Gap Debt™ gets a company to the point where it can raise it. There, it’s cost-effective in that the opportunity cost of not raising money is often staggering.
Gap Debt™ embraces the bold and independent mindset FirePower Capital was founded upon. For self-assured visionaries like you. From the entrepreneurial spirit in us.
What we look for
$2m+ and annual growth above sector average.
- Operating profitability
Must have excellent visibility into cash flows; if negative, must anticipate break-even within 12 months.
- Enterprise value
Sector M&A is active and / or business valuation is well understood / quantified
Must have deep insights into the future of the business
Operators are strong, must have “skin in the game”, share our values, and have some financial acumen in house
Must have significant operations in Canada
Agnostic, as long as companies within it have good prospects and we can understand the sector
- Use of funds
Must be for growth: acquisitions, working capital, etc.
Typical terms of Gap Debt™
- Loan size
$1 million to $20 million
12 to 36 months
- Interest rate
- Security ranking
First position, or second position behind LOC
One time or tied to milestones
- Principal repayment
Tailored to growth strategy and ability to repay
From the archives: September 2017
The Ownership Advantage: Delaying a Series A with Venture Debt
You’re out of early-stage start-up territory (i.e. with revenues exceeding $2m). You are close to breaking even but you need to continue spending to…