FCF Fox Corporate Finance supports Quantum-Systems in Venture Debt Financing

• Munich-based drone specialist concludes loan agreement with European Investment Bank (EIB)
• FCF analyses needs and finds optimal financing solution

Munich, July 19^th, 2021 – Munich-based financing specialist FCF Fox Corporate Finance GmbH acted as corporate finance advisor to drone specialist Quantum-Systems GmbH – also based in Munich – in the implementation of a venture debt financing deal with the European Investment Bank (EIB). “We are pleased to have found an ideal capital solution for Quantum-Systems, which offers the company the greatest possible flexibility in financing its further growth,” says Florian Theyermann, Director at FCF.

The venture debt raising accompanied by FCF is part of a series of capital measures by Quantum-Systems to finance the company’s strong growth. In the run-up to the EIB financing, a group of high-calibre entrepreneurs provided strategic equity capital to the company.

The EIB loan – which is independent of that equity round – is part of the “InnovFin – EU Finance for Innovators” program. It offers innovative growth / venture companies either a debt alternative to equity financing or can act as an add-on debt financing to capital increases in order to raise the total financing amount. “One of the advantages of such an EIB loan is that, in contrast to a capital increase, the founder’s shares are not diluted,” Florian Theyermann continues and adds that, “with the venture debt, we have found a financing solution for Quantum-Systems that combines the advantages of venture capital – availability of funds in the pre-break-even growth phase – and debt capital – with low dilution.”

The bullet loan has a volume in the double-digit million-euro range. “With the fresh capital, we want to expand our research and development capacities in the areas of autonomous flight and artificial intelligence and drive the further vertical integration of system-critical components of the vertical take-off and landing drones,” says Florian Seibel, CEO and co-founder of Quantum-Systems. In addition, the funds will be used for increased sales and marketing measures as well as the ramp-up of production and operations, supporting the company’s strong growth – in 2020 alone, Quantum-Systems achieved a 155 percent increase in revenue compared to the previous year.

Quantum-Systems’ drones are hybrid flying machines – and combine eVTOL (electrical vertical take-off and landing) capabilities, with a wing flight mode that enables long mission times, long ranges and quiet flight by utilizing electrical and aerodynamic efficiency. Users of the drones can be found in the fields of smart farming, volume calculation in open-pit mining, surveying work for large construction sites, real-time situational awareness, tactical mapping, Search and Rescue (SAR) and automated railway inspection.

In its search for attractive financing opportunities, Quantum-Systems benefited from FCF’s experience and the financing specialist’s broad network among financiers such as the EIB. “Especially for young and innovative companies, EIB’s venture debt financing offers enormous advantages in financing growth measures such as R&D, sales, marketing or building-up working,” Florian Theyermann emphasizes and adds: “FCF is an instrument- and product-independent advisor: if a company needs equity, we implement equity financing together with the client. But often our analysis shows that a company is suitable for the lesser known instrument “venture debt”, which can substitute an equity round diluting the shareholders. Therefore, FCF and its broad insight regarding instruments and investors can add real value to growth companies.”

About Quantum-Systems GmbH