Kashcade raises $23M and enters R&D lending space
Kashcade, the two-year old technology-driven lender, has raised $23M not long after closing its $5.5M raise in November 2023.
The financing round was a combination of debt and equity. The debt warehouse facility was funded by asset-backed lending specialist Rixon Capital, and the equity investments came from a range of well-known HNW investors including existing shareholders at Prandium capital.
The company received multiple debt term sheets for this round, but believed Rixon was the right choice due to their understanding of the asset class, the R&D Tax Incentive program’s quality and importance to Australia.
The capital will be used primarily to fund Kashcade’s expansion into the R&D Lending space, where companies borrow against future R&D Tax Incentive refunds, and to continue building Kashcade’s automated financial analysis software.
Kashcade funded c. $5M of R&D loans before making the offering public last week. Kashcade’s edge is its speed, with its technology platform enabling applications in just a few clicks and loans to be funded within 48 hours, as opposed to weeks with other providers.
“Our customer base would consistently ask us to lend against their R&D rebate. We eventually concluded that, with our tech platform and appreciation of the nuanced needs of fast-moving start-ups, we were well-positioned to be able to provide a killer offering in this space. And now, we do.” Alex Simmons, Kashcade Co-Founder and CEO.
The R&D Tax Incentive program in Australia is the lifeblood of the start-up ecosystem, particularly in companies’ early years, with c. $3B per year refunded annually to invest in Australia’s innovation. Pre-funding this refund with Kashcade means accessing this capital 12-18 months earlier, without any upfront cost or additional security beyond the grant.
Kashcade’s typical loan size is $300K but can fund loans up to $1M, secured over the R&D grant. The company doesn’t ask for any equity, warrants or options, restrictive covenants or guarantees from directors.
For more information: https://www.kashcade.com/
