Davidson Shamir Technology Growth Debt

About The Fund

Davidson Shamir Technology Growth Debt is an investment fund located in Berlin, Germany, with a primary focus on providing growth debt financing to technology companies in Europe, especially targeting the German market. Their investment thesis revolves around supporting mid-to-late-stage tech companies that have moved beyond the proof of concept phase and are seeking an alternative to traditional equity financing. Davidson Technology Growth Debt Fund offers a product known as Growth Debt, which is a hybrid form of capital with both debt and equity characteristics, tailored for the needs of young and growing tech companies. This form of financing enables companies to avoid shareholder dilution, maintain control rights, and minimize management distraction while providing flexible payback terms. The fund caters to businesses with at least €10 million in annual revenues and that are cash-flow positive or nearing break-even. Their investment range is between €2 million to €10 million, and they aim to work with companies that can utilize the loan for expansionary activities such as business growth, entering new markets, hiring talent, and increasing shareholder value. Davidson Technology Growth Debt positions itself as a more flexible and economical funding solution compared to equity, emphasizing minimal shareholder dilution. They seek to enhance the cash buffer, leverage equity capital, and hence, increase the rate of return on equity for their portfolio companies. The fund's specialities are listed as Early Stage investment, and it operates as a Private Equity Fund with €35 million in assets under management. Their team comprises experienced professionals with backgrounds in venture capital, finance, and various industry sectors. They provide personalized financial solutions that are highly customizable to a borrower's individual needs, cash-flow projections, growth milestones, and working capital requirements, often securing the loan against the company's assets, such as accounts receivable, inventory, and intellectual property rights. Their flexible venture debt solutions are also intended to be complemented with senior bank debt and mezzanine financing options, offering a capital structure that is balanced and cost-effective.