Ruffena Venture Finance
Ruffena Capital established Ruffena Venture Finance with William Owen and Richard Turner to fill a perceived gap in the market. William is an angel investor who specialises in debt and convertible loan stocks for smaller companies; Richard established Catalyst Business Ventures, which was active in the same space. The Company arranges 3-4 year Loans with equity warrants which have a put at the end of the loan. The overall package should return an IRR of between 14% and 18%. The lenders have the option of holding their warrants until there is a listing or other significant event.
What is Venture Debt?
Venture Debt provides debt financing to emerging growth companies at a stage when they typically cannot obtain traditional debt financing. The loan enhances the cash buffer of a company over a limited time horizon and can help leverage the equity capital and increase the return for entrepreneurs and equity investors. It is routinely used to achieve certain milestones in a company's growth cycle e.g. bring company to the next technology / clinical trial stage, complete product commercialization stage, attain profitability or bridge the cash gap up to an exit.