Barclays Corporate Banking has provided £2 million worth of venture debt to UK-based electric vehicle battery company POD Point. According to an announcement from POD Point, the debt is part of a £9 million financing package also including equity.
Terms associated with the venture debt could not be determined by time of publication.
Sean Duffy, head of technology, media and telecoms at Barclays Corporate Banking, told PDI POD Point represented a fast-growing company with a good mix of funding sources. High-growth companies like POD Point are what Barclays looks for in providing this type of financing, he added.
POD Point focuses on manufacturing electric vehicle charging points. Its chief executive, Erik Fairbairn told PDI his business is at the stage where it can work with a combined debt and equity financing deal. As the business matures, he added, financing is more likely to come from debt investments than additional equity stakes.
The utilisation of venture debt also shows the availability of this type of funding, Fairbairn said. “I think it’s really clear the debt markets have opened up for businesses,” he said. “All of a sudden there’s another tool in my toolbox for growing.” Seeking funding of this nature post-2008 was next to impossible, he added.
In addition to the financing provided by Barclays, venture capital firm Draper Espirit has invested £3 million for new shares and £2 million for secondaries. POD Point has also made £2 million shares open to the public through the crowdfunding platform Crowdcube.