Our Story
Rooted in Silicon Valley KISO CAPITAL has over 100 years of combined experience.
We understand the unique needs of businesses that might not be ready for traditional bank financing.
Working directly with these kinds of entrepreneurs for decades, we tailor growth capital that fits your needs. We were founded to help entrepreneurs grow their businesses and realize their dreams. Many young companies lack financial support from the mainstream financing market. Often these capital sources look for characteristics like institutional investment, hard collateral, large capital requests, profitability, etc. – which has made it difficult to obtain needed funds. Furthermore, many young companies want to maintain independence, need capital quickly, or require more flexibility from their capital source.
Profile
We serve growth companies with valuable products and services, that are expanding their market share, improving their products to disrupt a market, or improving on an existing model.
Criteria for a good match
- You want a capital source that is value-add and not restrictive or painful
- We want to support growth activity.
Typical Features of Companies We Fund
- Revenue growth rate above 15% annually
- Cash flow positive, profitable, or approaching profitability
- The company may be founder-owned and often has no prior institutional investment using capital primarily for revenue growth
- Experienced and knowledgeable management teams
Don’t Need To Be Financed with a VC
We were founded to help underserved, growing companies, so we don’t require that you have an institutional investment (eg; venture capital or other “professional” investors).
We Look At You, Your Operations, and your Ability to Repay
We don’t base our lending on existing “tangible” assets, instead, we concentrate on the company’s track record, near and long-term business prospects, rate of growth, and ability to achieve profitability and repayment.
Growth Capital
Available Growth Capital Sources
Every growing company requires capital to grow. The question is, where do you get it? There are several sources: friends and family, angel investors, venture capital, private equity, commercial banks, asset-based lenders, and other alternative capital. The problem with those sources is that friends and family and angel investors may be time-consuming and the amounts available are too small for your company’s needs. Venture capital and private equity may be too dilutive, this could result in a loss of management control, requiring your company to raise more capital than you need. Commercial banks and asset-based lenders require collateral and a track record of profits (if you do not have an institutional investor).
Growth Capital Financing
Growth Capital Financing is simply capital that accelerates revenue growth. This can take the form of debt or equity. Our fund focuses on debt products that support growth. Companies that seek growth capital financing will often do so to finance a transformational event in their lifecycle. These companies are likely to be more mature than venture capital-funded companies, able to generate revenue and operating profits or low levels of losses but unable to generate sufficient cash to fund major expansions, acquisitions, or other investments. These companies generally can’t find alternative conduits to secure capital for growth, so access to growth capital is the only alternative and is critical to pursue necessary facility expansion, sales and marketing initiatives, equipment purchases, and new product development. Growth capital can also be used to affect a restructuring of a company and balance sheet, particularly to reduce the amount of leverage (or debt) the company has on its balance sheet.
Growth Model Advantage
| Advantage 1 | Preserves ownership (or limits dilution) |
| Advantage 2 | Fast and efficient |
| Advantage 3 | Flexible Structures Advantage |
| Advantage 4 | Flexible Structures Advantage |
Why partner with us?
Benefits
| Benefit | Description |
|---|---|
| Accelerate Growth | Growth capital provides capital for growth. |
| Limited Dilution | Compared to equity, growth capital is less dilutive. |
| Enhance Liquidity | Provides relatively rapid liquidity. |
| Increase Valuation | Growth capital allows companies to grow revenues and increase valuation. |
| Retention of Management Control | Compared to equity, growth capital allows the management team and ownership to retain management control as growth capital products require limited ownership interest in the company. |
| Flexible Terms | Growth capital products do not require an abundance of collateral or profitability. We take a more holistic approach to lending and concentrate primarily on future operating plans. |
| VC Sponsorship Not Needed | Growth capital does not require venture capital investment or any institutional investment, unlike many banks and venture debt providers. |
Limited financing alternatives exist for revenue-generating emerging growth enterprises seeking transactions within the $200,000 to $3,000,000 range. Such enterprises encompass those backed by angel investors, self-funded entities, and those supported by less prominent venture capital and private equity firms.
We offer underserved companies venture debt solutions designed to set them up for steady expansion. Our recipe includes unlocking revenue-generating debt solutions without compromising equity positions. Benefit from flexible terms, less restrictive financial covenants, and the freedom to maintain control over your operations. Partner with our tenured team for financial solutions that facilitate effective growth.
We can provide funding to accelerate your business with
purpose-based capital that is entrepreneur-friendly
to help you pursue expanding markets.
Criteria
Transaction Size
Our transaction sizes are usually under $5 million, which is typically under the threshold for existing venture debt providers and private equity funds.
Benefits
The benefits of choosing debt financing for your company include:
- minimally dilutive
- maintain management control
- great for capital-efficient companies
Important Questions in the World of Funding
Chayton: How about fleshing out these questions with some content? (the way it is now only works for a presentation when you tell the audience about the item)
| Item | Question |
|---|---|
| Growth | How do we help you grow that’s UNIQUE? |
| Knowledge | Why is our experience good for entrepreneurs and how is it different? |
| Simplicity | How is our process simple? |
| Funding | How is our funding unique? |
Funded Companies
Chayton: Did you think to place a carousel with the logos of the companies you funded? – or do you want to show more here from the links you provided?