Boost & Co. is a growth capital and venture debt lending firm. Their primary focus is on early-stage, high-growth startups. Boost & Co. was founded in 2011 in London, UK by Lance Mysyrowicz. Boost & Co. is the sister company of Growth Lending, a well-known London-based financial services company.
About Boost & Co.
Boost & Co. specializes in venture debt funding for early-stage small and medium-sized enterprises that already have a proven history of success.
In general, Boost & Co. invests in and lends money across multiple verticals but primarily focuses on companies in certain sectors:
- SaaS
- MarTech
- Agencies
- FinTech
- Telecommunications
- Media
- Life Sciences
- Hardware
- MedTech
- CleanTech
To date, Boost & Co. has provided over £550 million to more than 130 million companies, including 52 investments and 12 exits. Among these, notable venture debt loans include:
- Bowman Power: £3 million
- Dealflo: £2 million
- Idio: £1.25 million
- Triptease: £1 million
- Vizolution: £1.5 million
Eligibility and Products Offered
Boost & Co. typically lends between £1 million and £10 million to SMEs, meaning that in most cases, the companies it invests in are already generating revenue. In general, businesses that get venture debt funding from Boost & Co. are preparing for an acquisition, entering a new market, or developing a new product.
Since Boost & Co. lends exclusively in the 7-figure range, the firm looks for companies that have annual revenue of over £2 million, a strong business plan, and a promising path to profitability.
They also invest in SMEs, meaning companies have a turnover of less than £45 million and fewer than 250 employees.
The criteria for venture debt funding from Boost & Co. are as follows:
- Turnover of less than £45 million
- Company size under 250 employees
- Minimum of £2 million in revenue from contracted orders, recurring revenue, and SaaS
- 50% or more revenue generated in the UK
- A proven business model with a functioning product
- An established customer base
- B2B company
- Organic growth already happening
- VC-backed or privately-owned
Typically, companies receive bespoke venture debt funding solutions from Boost & Co. to assist with M&A, organic growth, and R&D. However, the company also has a few standard products.
The types of venture debt products offered by Boost & Co. include
Growth Facility
A term loan with an overdraft facility to provide working capital for businesses experiencing rapid growth. This is one of the most popular products offered by Boost & Co.
Bridge Facility
A short-term loan used to finance an M&A transaction, help with refinancing, or provide working capital for businesses that are growing rapidly.
Acquisition Loans
A term loan used to finance an M&A transaction.
The following terms accompany each venture debt loan from Boost & Co.:
- 1-2% upfront fee
- 10-12% interest rate
- 12 months interest-only
- 12-24 months amortization
- Debenture security
- 10-15% equity kicker
How to Apply
To apply for funding with Boost & Co, individuals should visit the “Get Funding” page on the firm's website. After entering their information in the designated fields, a Boost & Co. team member will reach out if they determine there is a fit (Source - August 2022)
When applying with Boost & Co, individuals must
1. Collate their financials
Assemble revenue forecasts for the next 2-3 years, organize their last three years of accounts, and create a capitalization table.
2. Compile a detailed company profile
Boost & Co. will need to see everything about their business history, ownership information, and funding raised to date.
3. Explain their business model
Individuals will present the problems their company solves, unique value proposition, customer profile, and routes to market to Boost & Co. ahead of time.
4. Analyze their market
Individuals will create an in-depth overview of the size and maturity of their market as well as key trends, M&A activity, and market competitors
5. Describe their management team
Boost & Co. will look at key people in their business, their complete profiles, and their current board of directors.
6. Outline their funding needs
You will present how much money you need to the firm and explain why you need it.
7. Downside scenario planning
Boost & Co. will ask you questions about cost efficiencies, assets you can sell, and what you would do if revenue growth stalled or dipped.
8. Indicate their ambition
You will need to explain which exit routes (e.g. acquisition, IPO) are most attractive to you and why.
Capchase vs. Boost & Co
In addition to financing using venture debt from Boost & Co, founders and startups can work with Capchase. When compared to Boost & Co, 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 Boost & Co side-by-side. This is especially true for key areas like speed to funding, flexibility, structure & fees, and value add.
Speed
Capchase
24 hours to underwrite (led by a tech-driven & highly responsive underwriting system)
Boost & Co
A lengthy diligence process that typically takes 6-8 weeks
Flexibility
Capchase
Highly Flexible: No traditional financial covenants on amounts financed
Boost & Co
Strict requirements around business stage and scale
Structure & Fees
Capchase
Transparent & Simple: No prepayment fees, closing fees, warrants, or hidden fees
Boost & Co
May include terms around prepayment, expensive closing process, warrants, admin fees
Value Add
Capchase
A prescriptive funding plan
Boost & Co
Discrete funding events
