Venture Loan
Convertible bonds to participate in the growth of European scale-ups
Investment ticket
300-500K€
Duration
5 years on average
Risk profile
Moderate-High
Expected yield
12-18% annual + conversion potential
Sector
Innovative companies in the growth phase
- Welcome
- Investment and Financing
- Venture Loan
The investment opportunity
Financing the growth of tomorrow's European champions
The Venture Loan 1 is designed for innovative, growth-stage companies that need to finance their development without excessively diluting their existing shareholders. This hybrid debt-equity approach offers investors a unique opportunity to combine attractive fixed returns with capital appreciation potential through equity conversion.
Our positioning focuses on companies that have already demonstrated their ability to generate revenue and have a clear trajectory towards structural profitability within 12 to 18 months of investment.
Investment mechanism
For the investor
- Convertible bond with guaranteed annual interest
- Option to convert into shares under preferential conditions
- Participation in the capital gains in the event of the company's success
- Possibility of co-financing with the European Investment Bank (EIB)
Compensation structure
- Annual interest paid for the entire duration
- Non-conversion bonus if debt remains in effect
- BSA (Share Subscription Warrants) for additional leverage
- Amortization and deferral tailored to the cash flow profile
Project selection criteria
Business eligibility
We select innovative companies that have achieved product-market fit and demonstrate strong commercial momentum. Candidates must have revenue figures that will enable them to reach operational profitability within 12 to 18 months of our investment, with significant growth prospects in the medium term.
The company must have already completed at least one round of equity funding, demonstrating that its business model has been validated by other professional investors. This requirement guarantees a level of maturity and a proven capacity for scale-up.
thorough due diligence
Our in-depth assessment process analyzes the robustness of the business model and the company's ability to achieve its growth objectives. We validate the financial trajectory through a detailed review of performance metrics, the sales pipeline, and cash flow forecasts.
Assessing the quality of the management team and its execution capabilities is a key element of our analysis. We also examine the market potential, the competitive advantage of the technology developed, and the prospects for job creation in Europe.
Special attention is paid to the financial structuring to optimize the protection of your investment while preserving the interests of existing shareholders.
Pricing structure and returns
Investment return
- Annual interest rate : Variable depending on risk assessment and market interest rate levels
- non-conversion bonus Bonus if the bond is not converted into shares
- BSA equity kicker Subscription warrants to amplify capital gain potential
- Administration fees Monthly, covering active portfolio management
- Assembly fees Determined according to the complexity of the structure
- Early repayment No penalty or compensation
Optimizing yield
- Debt preservation scenario Fixed yield plus the non-conversion premium
- Conversion scenario Direct participation in growth and exits
- Mixed scenario Combination of fixed return + partial equity participation
- Tax advantage : Optimization according to your financial situation
Are you interested in discovering our current Venture Loan opportunities and understanding the conversion process? Our experts continuously analyze the most promising scale-ups in Europe.
Why choose Innochain K for your Venture Loan investments?
Our expertise in evaluating scale-ups and our European network allow us to identify tomorrow's champions before other investors.
Recognized scale-up expertise
Over 100 growing companies successfully supported
Our 20+ years of experience in evaluating innovative companies allows us to identify future European leaders. As official experts for the European Commission and the EIB, we have a unique perspective on the innovation market.
EIB Co-financing
Preferential access to European Investment Bank financing
We structure co-financing arrangements with the EIB to increase available funds and optimize terms. This collaboration strengthens the security of your investments while maximizing leverage.
Active support
We are not simply financial investors
Our team of experts provides operational support to portfolio companies to accelerate their growth: financing strategy, search for additional public funding, European business development and organizational structuring.
Proven track record
Concrete successes and successful exits
Our historical portfolio boasts an IRR (Internal Rate of Return) above the European venture debt market average. Several of our investments have exited at significant valuations, generating attractive multiples for our investors.
Investment process
1
Qualification of your profile
- Assessment of your wealth management objectives and risk appetite
- Definition of the amount and duration of the commitment
- Detailed presentation of the convertible bond mechanism
2
Presentation of opportunities
- Access to available investment files
- Due diligence shared with total transparency
- Modeling of return scenarios (debt, conversion, mixed)
3
Structuring and monitoring
- Optimization of the legal and tax structure
- Support in decision-making
- Detailed quarterly performance reporting
Contact
Your Gateway to Innovation
We are always happy to engage with private investors looking to diversify their portfolios with investment opportunities in European innovation. Contact us to discover current opportunities.