Owners, promoters, and their shareholders are constantly looking for less dilutive types of finance to help them stretch their cash runway without additional funding through issuing new shares for equity capital at lower values, for capital markets remain quiet and access to private money narrows for digital businesses.
What is EvolutionX?
DBS and Temasek, in collaboration, set up EvolutionX Debt Capital, a platform for “growth stage debt financing”. With a focus on Asia, especially Southeast Asia, India, and China, they offer minimal-dilutive financing to technology-enabled businesses from Singapore, which is its headquarters.
Its objective is to facilitate the expansion of Asian technology companies by offering debt finance as an alternative to raising capital.
Growth debt, according to EvolutionX, helps entrepreneurs and investors limit shareholder dilution while bridging and extending a startup’s liquidity runway until the next fundraising round or exit event.
Over the next several years, it seeks to develop several investment opportunities and offer amortising term financing facilities across a variety of Asian market sectors. These sectors include consumer, education, logistics, financial services, industrial development, and healthcare.
How can EvolutionX help companies develop in their growth stage?
For businesses looking for funding to support their expansion, EvolutionX’s growth debt financing has several clear benefits over equity financing.
- Debt funding during the growth stage
Scaling up in your company’s growth stage will need continuous funding. In an ideal world, you are making enough money to support your expansion plans on your own. Nevertheless, such situations are uncommon.
Dealing with the expansion stage often entails locating a trustworthy lender who can provide growth-stage debt funds. It will provide businesses with access to funding for their expansion plans without reducing their ownership stake in equity.
EvolutionX is aware of the particular demands and risk profiles of rapidly expanding businesses. Businesses in the development stage can obtain loans at more reasonable and accommodating terms on their debt finance platform. These terms include extended payback times, competitive interest rates, and the option to convert debt into equity under specific circumstances.
- Make use of global opportunities
In order to grow your firm and reach new markets, you must plan and execute a growth strategy. Companies can obtain the appropriate strategic support and access to Temasek’s and DBS’s extensive networks through loan financing.
- Quicker scaling with less dilution
When your business is growing and you need to pay for supplies and an increased payroll, working capital is essential. However, not all financing choices are the same or ideal for all company owners, particularly if you want to maintain complete ownership and control over your enterprise.
With the minimal-dilutive funding options that EvolutionX provides, you may get the operating money you want without giving up ownership or your whole ability to make decisions regarding the present and future course of your company.
Strengthening ties and preventing share dilution are some benefits of this. Each time a firm obtains capital through equity financing, it issues new shares and decreases the ownership percentages of its current shareholders. In certain cases, you can avoid this problem and keep the value of your current equity by using less-dilutive fundraising.
Less-dilutive lending solutions give you easy access to working capital, facilitate the payment of your invoices on time, and improve relationships with suppliers and contractors.
