In the startup world, “debt” can sound like a four-letter word. Founders are often encouraged to chase equity rounds and avoid debt at all costs. But that thinking overlooks one of the most strategic, founder-friendly tools available: non-dilutive capital in the form of both venture debt and equipment financing.
At ATEL Ventures, we’ve seen firsthand how flexible capital structures can help startups reach key milestones, extend runway, and scale with confidence — often paving the way to an IPO or acquisition. The proof? Our portfolio.
Public Companies That Used Non-Dilutive Capital to Fuel Growth
Initial Public Offerings (IPOs) may be a rarity these days, but several companies that took advantage of venture debt or equipment financing from ATEL Ventures have gone on to become publicly traded, building long-term value in capital-intensive industries like energy, life sciences, and cloud infrastructure. Their stories highlight how the right capital, at the right time, can make a defining difference:
- DigitalOcean: DigitalOcean offers cloud computing services tailored for developers, startups, and small to medium-sized businesses. ATEL Ventures extended equipment financing during the company’s early stages, facilitating the enhancement of its infrastructure and service offerings. DigitalOcean completed its IPO in March 2021 and its market capitalization today stands at around $4.5 billion.
- Skillz: Skillz is a mobile gaming platform that enables developers to create and monetize multiplayer competitions, and ATEL Ventures provided non-dilutive capital to support its expansion efforts. The company went public in December 2020 via a merger with a special purpose acquisition company (SPAC) and now has a market capitalization of approximately $1.2 billion.
Other companies that ATEL Ventures has supported over the years that have gone public include: Bloom Energy, which develops solid oxide fuel cell technology for clean, reliable on-site energy generation; Twist Bioscience, which specializes in synthetic DNA production for applications in healthcare, agriculture, and industrial chemicals; Five9, which provides cloud-based contact center solutions; and Boingo Wireless, a provider of global Wi-Fi services across airports, stadiums, and other high-traffic venues.
Acquisitions and Other Successful Exits
Non-dilutive capital from ATEL — whether through venture debt or equipment financing — has also played a role in supporting high-impact startups through acquisitions and other strategic exits. These outcomes validate that flexible capital isn’t a compromise, it’s a catalyst. Success stories within the ATEL Ventures portfolio include:
- Omniome: ATEL Ventures provided equipment financing to support Omniome’s development of innovative DNA sequencing technologies for clinical and research applications. In July 2021, Pacific Biosciences (PacBio) acquired Omniome for approximately $800 million.
- TriLumina: TriLumina developed compact semiconductor laser arrays for 3D sensing applications, particularly in automotive and consumer electronics. ATEL Ventures provided equipment financing to facilitate the company’s technological advancements. TriLumina was acquired by Lumentum Holdings in 2020.
- ViaCyte: ATEL Ventures’ support helped fund ViaCyte’s development of stem cell-derived therapies for diabetes treatment. Vertex Pharmaceuticals acquired the company for $320 million in August 2022.
Other companies in the ATEL Ventures portfolio that have had successful exits via acquisition include: Luxtera, a pioneer of silicon photonics technology for high-speed optical networking (acquired by Cisco Systems); Sensity, which developed smart city solutions using sensor-based lighting and data platforms (acquired by Verizon); SilverPop, a pioneer of marketing automation and behavioral email marketing (acquired by IBM); and Tegile Systems, which offered flash storage arrays for enterprise data centers (acquired by Western Digital).
Non-Dilutive Capital as a Growth Lever
These success stories underscore that venture debt and equipment financing are strategic instruments for growth. By providing non-dilutive capital, ATEL Ventures helps startups scale operations, invest in innovation, and position themselves for successful exits.