On this episode of ATLalts, Mike Shum, Co-Founder and CEO of Cascade, shares his journey and the mission of the company. Mike discusses the challenges in the private debt market and how Cascade is building solutions to simplify and streamline the process. Mike also provides insights on preparing for accessing institutional debt and the importance of the structuring phase in the debt raise process. In this conversation with ATLalts host Andres Sandate Mike discusses the importance of valuation and terms in debt financing. Mike emphasizes that price and size are not the primary concerns for early-stage founders, but rather factors such as leverage and flexibility should get more attention. Mike explains that interest rate is just one component of a term sheet and that founders should consider other factors like upfront fees and unused capital fees. Mike highlights the significance of eligibility criteria and concentration limits. Mike discusses the monitoring and compliance aspect of debt deals, emphasizing the need for accurate and real-time reporting. Mike concludes by explaining how Cascade provides solutions for asset managers in the private credit space and shares the company's vision for the future.

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Takeaways

• Price and size are not the primary concerns in debt financing; factors like leverage and flexibility are important considerations as well, particularly for early-stage companies.
• Interest rate is just one component of a term sheet; founders should consider other factors like upfront fees and unused capital fees.
• Eligibility criteria and concentration limits are crucial aspects of debt deals that often get overlooked by founders who prioritize price and size.
• Accurate data and real-time monitoring and compliance are essential for successful debt deals.
• Cascade provides solutions for asset managers in the private credit space and aims to streamline the debt management process.
• The private credit market is growing rapidly, and Cascade envisions becoming a one-stop shop for managing all aspects of the debt stack.

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Listen to the full episode here.