Altmaven Capital

With high interest rates tightening access to traditional debt financing, companies are increasingly turning to alternative funding methods. In this challenging environment, capital providers are adopting innovative financing strategies. Private equity groups are structuring deals using preferred shares with complex terms, while private credit firms are deploying creative convertible note features to avoid the burden of high coupon rates. In the venture space, "pay-to-play" provisions are becoming more common, requiring existing investors to participate on a pro-rata basis or risk significant ownership dilution. Additionally, companies are tapping into their assets to gain vital cash reserves by leveraging sale-leaseback transactions. Even as firms focus on operational efficiency over new projects, attracting investor attention remains a tough task in this competitive market. However, a clear path to sustainable cash flow and a reliable growth strategy can make all the difference in securing favourable funding terms. #StrategicPartnerships #CorporateFinance #CapitalMarkets #BusinessGrowth #PrivateEquity #AlternativeFinancing #EquityFinancing  #VentureCapital https://lnkd.in/dUNNr-6W

Altmaven Capital is #hiring! Join our team. We're recruiting Inside Sales professionals. Are you passionate about technology? Do you thrive in a fast-paced, dynamic environment? If so, we have a fantastic opportunity for you! #TechJobs #SalesJobs #HiringNow #InsideSales #JobOpportunity #JoinOurTeam #CareerGrowth #TechSales https://lnkd.in/gxHtheXi

We're observing a concerning trend unfolding across Canada that may signal challenging times ahead. According to the latest report from the Office of the Superintendent of Bankruptcy, insolvencies across the country have surged by +28.2% year-over-year and by +5.8% sequentially. In the previous 12 months ending February 29, 2024, business insolvencies soared by +58.1% compared to the 12-month period ending February 28, 2023. Industries such as accommodation and food services, construction, and retail trade have been hit hardest, collectively accounting for 40.6% of the total. Canadian businesses from coast to coast are grappling with tough decisions to ensure their survival. https://lnkd.in/gd7C8PZa

Thanks Peter Walker for sharing another great piece of insight. There were 553 startups on Carta that was acquired in 2023. The acquire rate increased through the additional rounds of funding, until Series D. We also believe that M&A is a core exit path for startups. #cartadata #founders #acquisitions #exits https://lnkd.in/e2VGJDnw

Goldman Sachs, the leading M&A firm globally by total dollar volume, has just unveiled its outlook for 2024. Here's a glimpse into some compelling highlights: 1. Corporate spin-offs and carveouts are rising, emphasizing simplification and focus over empire-building. Our take: Altmaven sees the same opportunity for carveouts within Canadian public and private companies. The pivotal question: Who will be the catalyst for change? Management or activists? 2. Financial sponsors, including private equity and venture capital firms, face challenges in returning capital to limited partners amidst a slowdown in the M&A and IPO markets. Our take: It's uncommon to witness stock indices approaching record highs with few IPOs. We anticipate a surge of new listings in the latter half of 2024, revitalizing the capital markets. https://lnkd.in/g4gCZ9Hd