Channel’s deep dive into Europe’s fastest-growing startups reveals a dynamic landscape of promise and peril. While these companies have achieved remarkable growth, a shifting funding climate and increased financial risk demand a new approach: smart money.
Navigating the new reality
The days of easy access to cheap capital are gone. Rising interest rates, declining venture capital (VC) investment and increased leverage present significant challenges for startups seeking to fuel ambitious growth trajectories. Our analysis shows that one in five high-growth companies could face cash flow issues and potential failure without securing further funding or making substantial changes.
Smart money: a strategic imperative
In this evolving environment, smart money has become a necessity. For startups, this means:
- Strategic funding decisions: Avoiding unfavourable equity deals that dilute ownership and harm long-term value.
- Data-driven allocation: Utilising data to optimise cash deployment and maximise returns on investment.
- Tactical debt utilisation: Leveraging short-term debt strategically to finance high-impact projects.
- Non-dilutive capital: Accessing funding options that preserve founder control and ownership.
- Building for the future: Utilising structured financing and risk management expertise to establish a strong track record and asset base, paving the way for future access to traditional, cheaper sources of finance.
Channel: your smart money partner
Channel has been a trusted partner for technology startups and investors for over two decades, providing over £20 billion in funding and completing over 700 transactions across diverse sectors and geographies.
Our smart money approach combines:
- Deep sector expertise: We possess a profound understanding of the innovation economy, its nuances, risks, and rewards.
- Agile partnership: We look beyond traditional lending metrics to assess opportunities and tailor solutions to individual startup needs.
- Global reach: We offer access to a vast network of investors and opportunities across five continents and more than 30 countries.
Smart money for investors
For investors, partnering with Channel offers:
- Access to high-potential startups: We identify and invest in truly innovative companies with exceptional growth potential.
- Alternative asset investment: We secure finance against alternative assets, such as receivables, mitigating risk and enhancing returns.
- Risk management expertise: We employ robust risk management strategies at both the portfolio and transaction levels.
- Proven track record: Our investors have enjoyed average annual returns of 10.2% since the start of 2022.
Embracing the future of funding
The era of smart money is here. By embracing this approach, startups can navigate the challenges of the current funding landscape and unlock sustainable growth, and investors can continue to enjoy reasonable risk-adjusted returns. Channel is committed to empowering innovation economy startups and investors alike with the expertise, resources, and partnerships needed to thrive in this new era.
Join us in shaping the future of the innovation economy. Let’s make smart money work for you.
Download Channel’s report — Financing Growth in Europe’s Innovation Economy — to discover more.
At Channel, we provide high-quality, privately originated asset-backed investment products by originating, structuring, and managing investments for leading institutional investors. We specialise in opportunities from issuers in specialty finance and the innovation economy.
For borrowers, we are a trusted partner in growth. Our expertise in structuring tailored financing solutions ensures you get the capital you need to scale, with a streamlined process and terms that work for your business. We are committed to delivering flexible, efficient, and growth-focused funding that empowers your success.
