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

  • Revenues
    $2m+ and annual growth above sector average, or monthly recurring revenue of $80k+
  • Operating profitability
    Must have excellent visibility into cash flows; if cash flow negative, must anticipate break-even within 18 months
  • Enterprise value
    Business value in an M&A context can be readily substantiated
  • Forecasting
    Must have deep insights into the future of the business
  • Management
    Operators must have “skin in the game”, share our values, be an impressive and cohesive team, and have financial acumen
  • Location
    Must have a headquarters in Canada
  • Sector
    Industry agnostic
  • Use of funds
    Generally, for growth (acquisitions, working capital,  etc.) and dividend recapitalizations

Typical terms of Gap Debt™

  • Loan size
    $1 million to $20 million
  • Term
    12 to 36 months
  • Returns
    Interest rate>10%; Upside: warrants, equity kickers, bonuses, or royalties
  • Security ranking
    First position, or second position behind a line of credit
  • Disbursements
    Flexible: capital can be made available on closing, or in tranches tied to growth milestones
  • Principal repayment
    Tailored to growth strategy, e.g. deferral of principal payments for up to 12 months, large bullet payment at end of term, seasonality adjustments
Market Insights
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 need to continue spending to scale…

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Case Studies

Last Call Analytics
Last Call Analytics has developed a frontline sales analytics and visualization platform for the beverage and alcohol industry. FirePower invested Gap Debt as a way to bridge them to a Series-A financing.

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As this was the first time we went outside our founders’ circle of family and friends to raise non-dilutive capital, I wanted to make sure I knew all my options. FirePower proposed to do a survey of likely lenders, on a no-name basis; their survey would give me concrete feedback on the likelihood of our raise, while LOT retained the flexibility of anonymity. After positive responses from lenders, the Board decided to formally task FirePower with raising the necessary capital. FirePower proved to be very creative and relentless in their pursuit of the right deal for LOT.
George Achilleos, President of Live Out There