Dispelix - Debt funding from venture debt providers

Dispelix is a company that develops eyeglass lenses used in augmented reality (AR) software. Lightness, cost efficiency and image quality are considered the key competitive advantages of their product. Dispelix cooperates with major global technology companies to incorporate the lenses in their partners’ upcoming products. These collaboration projects are currently in a phase where Dispelix is required to substantially scale its production. Thus, the company needs to significantly invest in production procedures. In order to fund such investments, Dispelix started a fundraising project where, on top of equity funding, the objective was to find debt instruments that would not result in over-excessive dilution of the company’s ownership.

Grannenfelt Finance planned and executed the debt funding project for Dispelix. As the company seeks strong growth and is yet to make a profit, the fundraising project was focused on venture debt providers. During the fundraising process, there were discussions with several different venture debt providers. Still, eventually, offers were requested from only two parties. Dispelix chose the party best suited to its strategy, and signed the funding contracts in December 2020, which was also when it received the first tranche of funding.

The funding arrangement made sure that Dispelix can utilise the secured funding whenever its business development so requires.