Your venture debt partner for
purpose driven growth.

Founder Friendly Venture Debt

PaceZero Capital Partners Ltd. established our venture debt strategy with the launch of our first closed-end fund in 2021. We partner with innovative technology companies whose products or solutions drive improved economic, environmental and social outcomes.

We focus on providing Seed to Series B stage ventures with minimally-dilutive capital, while being a transparent and friendly partner aligned with our portfolio companies' long term success. Our flexible, customized debt financing solutions, typically starting with a $1mm-$5mm delayed draw facility, with the ability to expand with growth.

Investment Criteria

Loan sizes

$1M - $10M

stage

Late seed stage through growth

regions

Canada

United States

impact

Sustainability Aligned

Structures

First Lien Senior Secured Loans
Second Lien Secured Loans
Equity Co-Investments

NON-AMORTIZING TERM loan

1-4 year delayed draw term loan with a bullet maturity.

Venture Debt Uses

Limit Dilution

Venture debt with modest warrant coverage limits dilution while aligning lender interests with the long term success of the borrower.

Extend Runway

Venture debt can extend the cash runway of a startup company, allowing it to hit critical milestones and achieve a higher valuation in its next financing round.

Fuel Growth

Enter new markets, increase sales and marketing spend, or pull forward other growth initiatives driving accelerated growth without raising additional equity.

Fund Capex

Increase production capacity, buy equipment, or fund other capital expenditures required for the next leg of growth.

Bridge to Cash Flow

When there is visibility to positive cash flow, venture debt can extend the runway allowing the company to avoid a dilutive bridging equity financing round.

Insurance for Delays

Cushion for when things don't go exactly according to plan. Venture debt can help bridge a gap, allowing the company to get the company back on track.

Your venture debt partner for purpose driven growth.