Barclays Review
Barclays is a business-centric bank based in London, U.K. One of their focuses is on venture debt. The bank has a long and established history of financing businesses in the U.K., the U.S., the Americas, Asia, and Africa.
About Barclays
Barclays’ venture debt allocations focus on AI, machine learning, blockchain, smart contracts, and quantum computing companies.
In 2016, the firm announced a £200 million venture debt fund for FinTech companies. However, the firm also invests in Agribusiness, Sustainability, AI, Cybersecurity, Software, Healthcare, and Blockchain
Barclays has now completed over 50 venture debt transactions and has 21 portfolio exits spanning the U.K. and the U.S. Some of its recent portfolio companies include Nivelo, 80 Acres Farms, Kimble, and finch (Source - August 2022).
Eligibility and Products Offered
To qualify for venture lending, Thomas Mahon, Vice President of High Growth & Entrepreneurs, says businesses must have a turnover of more than £1 million and year-on-year growth of 20%, as well as VC investors with sector expertise (Source - August 2022).
In order for Barclays to lend, the business must have a good management team, a clear understanding of their customers and market opportunity, as well as a robust business model.
In terms of corporate lending, the firm has several services that can be custom-tailored to each company:
- Business Growth Fund
- Corporate acquisition and finance
- Infrastructure and project finance
- Recovery loan schemes
- Revolving credit
- Term loans
- Wholesale stock finance
- Consulting and wealth management
In addition to venture debt financing, Barclays offers several other resources to entrepreneurs:
The firm has also partnered with University College London (UCL) to assist students in creating early-stage tech startups.
How to Apply
To apply for funding from Barclays, founders should navigate to the “contact us” section of their venture debt home page. After selecting the appropriate geographic region, founders can schedule a phone call with the corresponding office (Source - August 2022).
Capchase vs. Barclays
In addition to financing using venture debt from Barclays, founders and startups can work with Capchase. When compared to Barclays, Capchase’s funding model is designed to remove excess fees that can save clients up to 50% when compared to traditional venture debt providers (Source – June 2022).
It can be helpful to see the differences between Capchase and Barclays side-by-side. This is especially true for key areas like speed to funding, flexibility, structure & fees, and value add.
Speed
Capchase
48 hours to underwrite (led by a tech-driven & highly responsive underwriting system)
Barclays
Often a long diligence process
Flexibility
Capchase
Highly Flexible: No traditional financial covenants on amounts financed
Barclays
Fairly flexible: No minimum net worth, working capital, current ratio, quick asset ratio, liquidity ratio, or debt-to-equity ratio is required to apply
Structure & Fees
Capchase
Transparent & Simple: No prepayment fees, closing fees, warrants, or hidden fees
Barclays
May include terms around prepayment, expensive closing process, warrants, admin fees
Value Add
Capchase
A prescriptive funding plan
Barclays
Discrete funding events
