With headquarters in Portola Valley, California, and investment team members in New York and Boston, Western Technology Investment (WTI) has been a steady presence in venture debt lending since 1980. In its 42 years in business, the firm has provided over $7 billion in capital to over 1,400 companies, including Google, Facebook, Palantir, Stitch Fix, Toast, and ChargePoint.
About Western Technology Investment
In addition to concentrating heavily on the technology sector, WTI has a diversified mix of clients in other industries including aerospace, climate, consumer, education, environment, enterprise, fintech, food, hardware, health, hospitality, infrastructure, insurance, materials, media and gaming, real estate, social, transportation, and workforce.
Though the majority of Western Technology Investment’s clients are U.S. Based, the firm also has invested in enterprises in Africa, Asia, Canada, Europe, Latin America, the Middle East, and Oceania.
Like many venture debt firms catering to specific sectors, no public ratings or reviews are visible online. The firm is privately-held.
Eligibility and Products Offered
Western Technology Investment’s sweet spot is offering venture debt to growing technology companies. While much of its lending has been involved with start-ups, WTI also assists established tech behemoths such as Google in 1999 and Facebook in 2005. The company is structured to help tech hopefuls get to altitude or provide capital to ventures facing changing business conditions.
WTI is liberal with its eligibility requirements for borrowers. No minimum net worth, working capital, current ratio, quick asset ratio, liquidity ratio, or debt-to-equity ratio is required.
While providing venture debt to early-stage ventures is its cornerstone, WTI also participates in grants, late-stage ventures, private equity, seed, Series B, and Series A fundraising. Their most recent investment was helping Nue Life Health raise $23 million in Series A funding.
WTI provides funds through its institutional fund (the current fund is its 10th), which is supported by institutional LPs, including endowments, non-profits, academic institutions, and select family offices.
WTIs institutional funds vary in size. For example, its Investment Fund VII raised $375 million (Source – April 2020). From the fund, WTI provides capital for deals ranging from $250,000 to $30 million or more.
WTI 4-Point Pledge
Western Technology Investment provides a 4-point pledge to its borrowers, which is written into its Loan and Security Agreement:
- A material adverse change or effect will not cause the borrower to default or cause WTI to declare outstanding loans due and payable.
- Personal guarantees are not required by the borrower's investors or Board of Directors, and the borrower can keep its current banking relationship.
- No minimum net worth, working capital, current ratio, quick asset ratio, liquidity ratio, or debt-to-equity ratio is required.
- Insolvency by the borrower does not constitute a default or cause the loan to be due and payable, provided the borrower continues to pay its debts as they become due. (Source – June 2022)
How to Apply
Western Technology Investment team members can be approached directly by companies seeking venture debt. Contact information is visible on the company website, the principal’s LinkedIn profiles, and many other online sites featuring venture debt firms.
Capchase vs. Western Technology Investment
In addition to financing using venture debt from Western Technology Investment, founders and startups can work with Capchase. When compared to Western Technology Investment, Capchase’s funding model is designed to remove excess fees that can save clients up to 50% when compared to traditional venture debt providers (Source – June 2022).
It can be helpful to see the differences between Capchase and Western Technology Investment side-by-side. This is especially true for key areas like speed to funding, flexibility, structure & fees, and value add.
Speed
Capchase
24 hours to underwrite (led by a tech-driven & highly responsive underwriting system)
Western Technology Investment
Often a 1-2 month diligence process
Flexibility
Capchase
Highly Flexible: No traditional financial covenants on amounts financed
Western Technology Investment
Fairly flexible: No minimum net worth, working capital, current ratio, quick asset ratio, liquidity ratio, or debt-to-equity ratio is required to apply
Structure & Fees
Capchase
Transparent & Simple: No prepayment fees, closing fees, warrants, or hidden fees
Western Technology Investment
Terms around prepayment, expensive closing process, warrants, admin fees
Value Add
Capchase
A prescriptive funding plan
Western Technology Investment
Discrete funding events
