AC it is what we do
Contact Us
AC it is what we do

Transformational Venture Debt Financing for a Surgical MedTech Company

Client Overview

A founder-led Surgical MedTech company with $12 million in revenue and negative EBITDA sought growth capital to expand operations in Europe and the U.S. Despite a successful equity round at a $44 million valuation from family offices, the company struggled to secure meaningful venture debt due to the absence of institutional VC backing.

Challenge

  • Limited venture debt offers: Only one proposal for $2 million.
  • Aggressive growth plan requiring flexible and scalable capital.
  • Transitioning business model from system integration to software.

Solution by Attract Capital

Attract Capital designed a customized venture debt structure and executed a multi-phase financing strategy: 

Phase 1

Initial Facility

  • Raised: $12 million from a UK-based lender.
    • $8 million at closing.
    • Two $2 million tranches for future drawdown.
  • Impact:
    • Enabled business model transformation.
    • Supported Series B fundraising.
    • Equity value increased from $44M to $150M.

Phase 2

Refinancing & Expansion

  • Raised: $24 million from a Swiss-based lender.
  • Purpose: Refinancing and acquisition capital.
  • Impact:
    • Accelerated product innovation and time-to-market.
    • Equity value increased from $150M to $400M.

Phase 3

Strategic Replacement

  • Raised: $30 million facility in 2024 from a new lender.
  • Purpose: Replace existing lender and support new equity round.

Results

  • Total Venture Debt Raised: $88 million over 6 years.
  • Equity Value Growth: From $44 million to $400 million.
  • Venture Debt Growth: From $2 million to $24 million (12x increase).
  • Annual ROI: 163% per annum.

Key Takeaways

  • Strategic advisory and lender outreach were critical to unlocking capital.
  • Flexible debt structuring enabled scalable growth.
  • Strong lender relationships and transactional support drove successful outcomes.

Scaling a Founder-Owned MedTech Company from $44M to $400M in Equity Value

The Starting Position

  • Industry: MedTech
  • Revenue: $12 million
  • EBITDA: Negative
  • Ownership: Founder-owned
  • Recent Equity Raise: $44 million valuation (family offices)
The company attempted to raise venture debt independently.

Outcome

  • Only one proposal
  • $2 million facility
  • Limited lender interest due to lack of venture capital sponsorship
Despite strong strategic potential, the business had aggressive expansion plans across Europe and the U.S. and required meaningful capital to execute.

Repositioning the Capital Strategy

Attract Capital redesigned the entire capital approach:
  • Designed a more aggressive debt structure than previously used
  • Rebuilt the lender presentation
  • Expanded outreach to 25 venture debt lenders
  • Structured flexible borrowing capacity tied to future growth
The objective wasn’t just raising debt — it was creating scalable capital aligned with long-term expansion.

Unlocking the First Breakthrough

We secured a $12 million facility from a UK-based lender:
  • $8 million at closing
  • Two additional $2 million tranches
This facility was:
  • 6x larger than the company’s prior $2M proposal
  • Structured to allow staged drawdowns
Simultaneously, we advised on $8 million of interim fundraising as part of the Series B process.

Impact Within One Year

  • Accelerated transition from system integrator to software company
  • Series B closed at a $150 million equity valuation
  • Equity value increased from $44M to $150M within two years

Scaling Through Refinancing

As growth accelerated, the existing lender could not increase its facility size. We advised replacing them with a lender capable of supporting larger ambitions. A $24 million facility from a Swiss-based lender:
  • Replaced the prior lender
  • Provided acquisition capital
  • Funded continued expansion
We led:
  • Business diligence
  • Transaction execution
  • Lender relationship development
The company invested heavily in:
  • Technology innovation
  • Product expansion
  • Faster time-to-market
Even while incurring higher operating losses due to reinvestment:
  • Venture debt doubled from $12M to $24M
  • Equity value increased from $150M to $400M

4.5-Year Growth Snapshot

  • Venture debt: $2M → $24M (12x increase)
  • Equity value: $44M → $400M (9x increase)
  • ROI: 163% per annum

Strategic Replacement in 2024

When the Swiss lender chose not to remain in the deal:
  • Structured a replacement facility
  • Secured a new $30 million lender
  • Coordinated lender replacement alongside a new equity round
The capital structure evolved again — aligned with the company’s next stage of growth.

Total Impact Over 6 Years

  • $88 million in total financing raised
  • Three lender transitions executed strategically
  • Capital scaled alongside business transformation
  • Equity value increased nearly tenfold
What We Offer
  • Corporate Finance Expertise
  • Vast Practical Experience
  • Legendary Customer Service
Read More
Latest M&A Industry Updates!
  • Current trends in Lower Middle M&A Market and Middle-market Mezzanine!
Read More
Get a Free Consultation!
  • Mezzanine Funding Solutions
  • Advisory Services
  • End-to-end Acquisition Services
Read More

From Our Blogs

View All Blogs
Scroll to Top