Next Round Funding

Healthcare Growth Debt Financing

Next Round Funding Debt Fund is a specialized private credit fund serving the healthcare sector. The Fund provides debt financing solutions for early-stage medtech, pharma, biotech, and life sciences companies to pay for the front-end project costs of their Regulation A+, Regulation CF, or Regulation D (506c) offerings.

The Fund aims to build a diverse portfolio of securities interests in high-growth healthcare issuers engaged with MFP to provide management consulting solutions for their capital raising needs.

Our one-stop-shop lending and consulting model provides a convenient solution to several of the key issues that hinder growth for startups, including scarce sources of capital and the need for more practical fundraising alternatives, insufficient financial resources to pay for the cost of a large offering, and a limited number of proficient consultants with the expertise to guide early-stage companies through the fundraising process. Our consulting strategy is a proven and repeatable process that can be leveraged for deal flow and to extend opportunities to adjacent markets and verticals.

Investment Opportunity

Up to $50 million senior debt

$100k minimum investment

15% per annum interest payable monthly

12-month term

Interest-only payments

We are seeking up to $50 million in capital commitments to purchase senior debt in the Fund through a private placement on a continuous basis to accredited investors, with a minimum investment amount of $100k per investor.

The Fund will pay interest of 15% per annum with interest payable each month for 12 months upon receipt of proceeds.

Distributions will be paid out of interest received by the Fund on credit extended to clients via our lending programs. Principal will be returned to investors after one year.

Proceeds will be used to initiate lending programs and extend credit to clients for our capital raising services. The Fund generates a profit from each client equal to the net interest spread – the difference between interest charged to the client (21%) and the rate paid on borrowed funds (15%) – plus origination fees. Consulting fee income from services provided to clients under our capital raising programs will be expensed to consultants as incurred.

Positive cash flow generated by the Fund will be used to service outstanding debt and accelerate growth of our lending portfolio through customer acquisition initiatives including buildout and development of support infrastructure, data resources and educational materials to expand outreach, as well as CPVS™ deliverables for clients who may potentially engage MFP to provide consulting services for their Reg A+, CF, or 506c offerings. The Fund may generate additional income from partial sales of portfolio holdings in Reg A+ and secondary offerings which may be used to fund general overhead and marketing expenses but will predominately retain holdings for the purpose of maximizing exit value in future acquisitions, buyouts, and other liquidity events.

Quarterly Fund Projections

Our lending program is designed to generate positive cash flow from each deal. Based on per-unit profit assumptions, the Fund would need approximately 80 engagements over a 36-month period to service all interest and debt obligations for a fund size of $50 million. Our projection model assumes the Fund implements 115 programs over a 36-month period.
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