Element Finance which is based in San Antonio has locked fundraise of $30 million as its second chance to fund start-ups, as told by John Gallagher who is the CEO of the company.
What is provided by Elements Finance?
The former Element SaaS Finance, the company is providing an alternative way of debt financing for the start-ups, out of which the maximum start-ups are providing cloud-based business software. In December 2019, Element was dragged out as a new company from the company named Scaleworks Associates which is also based in San Antonio after being a part of the finance division of Scaleworks.
How many investors contributed to the second opportunity of Fundraise?
As per a document submitted with the United States Securities and Exchange Commission, there are around 46 investors who make contributions for raising the funds on 29th September. As per the report shared initially by reliable sources, the company had managed to raise around 50 percent of the fund by the middle of February this year only.
Did the company extend its investor base or is it still limited to San Antonio?
Though most of the investors were local only and the same had also invested in Element earlier as well but now the company became successful in expanding its investor base throughout Texas as confirmed by the CEO John Gallagher.
What is the main focus of the second fund?
The second fund is focused to enable the company to raise the structure of its loans. John Gallagher said in an interview that earlier the company used to issue loans in between the range of $2 million to $3 million but after raising the second fund loans are in between the range of $5 to $6 million and can be even extended up to $10 million which will be the largest loan ever issued by the company.
What will be the other purpose of raising the fund?
Element Finance is also aimed at using the raised funds to grow its customer database and also to expand its business in San Antonio as confirmed by Gallagher and further adding to the same he said that now the company has 4 full-time employees.
Did the covid-19 pandemic impact the operation and business of the company?
The covid-19 pandemic has not left any sector and so, the company also had to face hardships impacting business negatively at the beginning of the pandemic but fortunately not much that it has to shut its business. As confirmed by John Gallagher “Whenever Covid kicked off, everyone was very cautious in making more money if they weren’t on the (venture capital fundraising) track” he added further that the companies had also taken federal emergency funds such as the Small Business Administration’s Paycheck Protection Plan and Economic Injury Disaster loans for two months approximately.
Is Element back on the track now?
The CEO of the company said that now Element is all set to be back again to provide loans just like they use to provide before the beginning of the pandemic and has also given out loans to a total of 35 start-ups and the amount was two times of the amount the company had given out ever since after closing its first opportunity fund which worth nearly $3.5 million in August 2020.