How it works
Tranche 1: pure grant. Tranche 2 (after revenue milestone): 0% loan, 5-year. Tranche 3 (after profitability): commercial loan at market rate. Bankability is built, not assumed.
Best for
Very early-stage businesses that aren't yet bankable but have demonstrable potential.
very early stage
pre-revenue
capacity building
Related in Blended & structured
Blended Capital Stacks
Layered financing combining grant (first-loss), concessional debt (DFI), and commercial capital (senior tranche) in one deal.
Performance-Indexed Convertible Instruments
Debt that converts to equity only on specific performance milestones. Otherwise repays as fixed debt. Conversion terms improve with performance.