Element Finance raises $30M for the second fund to provide loans to startups

San Antonio-based Element Finance had raised a total of $30 million as a way of providing another chance to provide some funds to all the startups as said by the CEO of the company, John Gallagher.

What are the plans of Elements Finance raising the Funds?

As per the reports, the previous Element SaaS Finance has been giving an alternative way of funding the debt for all the startups, and it was seen that the funds are mostly being given to the startups who are completely based on providing the software for cloud-based business. As of the year 2019, In the month of December, Element was denied as a new firm from a company called Scaleworks Associates who were also based in San Antonio and was even a part of the finance division of Scaleworks.

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How many investors helped the company in their second chance of Fundraising?

According to a report provided to the securities and exchange commission of the United States, there were a total of 46 investors who has contributed to the funding raising for the company on September 29. According to the report shared at first by the sources the company has anyhow arranged to raise a  total of 50% of the funds by the midway of the February of this year itself.

Had the company extended its investor to other places or is they are still limited to San Antonio?

Even though a lot of the investors who invested in the fundraise were from San Antonio and earlier as well they had invested in the company Element however now the company had successfully expanded their investors all over Texas as said by John Gallagher the CEO of the company.

Element Finance raises $30M
Element Finance raises $30M

What is the ultimate motive of the second fund?

The companies idea of raising a second fund is completely based on raising a certain amount and also follow the structure of the loan as mentioned by John Gallagher. He had even said in a recent interview that this year the company had even issued loans which varied between the range of $2million to $3 million however the second fundraising has increased the range up to $5 to $6 million and it is even believed that the funds can be increased up to a total of $10 million and it is said that it will the highest amount raised by the company.

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What is the main aim of the company for raising the funds?

Element Finance is aiming pon to use the funds being raised to increase their overall growth of the customer and the company is even planning on growing their business in San Antonio as mentioned by Gallagher and had even added that now the company even had 4 full-time employees.

Did the pandemic had any effect on the operation and any of the business of the company?

The covid-19 pandemic didn’t leave any business behind and even the company had to go through some difficult times which had hampered the business a lot and even more at the beginning of the pandemic. However, the impact was not that much that they had to close their business. According to the CEO John Gallagher when the pandemic started, every person was into earning more and they were on the total fundraising track. He even added that the companies had even taken all the emergency funds for example the protection plan for the small business and the loans provided for the financial loss for almost 2 months.

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Has Element recovered from the loss due to Pandemic now?

According, to CEO John Gallagher,  Element Finance is now all ready to be back on track now is and is planning on giving loans just as before. They are all back on track just like before the Pandemic. The company has even provided loans to a total of 35 start-ups and the amount is given out was twice the total price the firm has provided after closing the fundraising after the first opportunity and it was almost a total of $3.5 million in the month of August 2020.

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