Codec: A Journey From VC to Debt

Background and Funding Journey

Codec’s founder, Tom Blah, brought a distinctive perspective to the fundraising process, having previously worked in venture capital. Yet even with that experience, navigating capital-raising as a founder proved more complex than expected.

The challenges were clear: finding the right investor fit, aligning on timelines and growth strategies, and managing tensions around exit preferences and board control. While traditional VC funding offers significant resources, it often comes with expectations of aggressive scaling and long-term profitability—expectations that clashed with Codec’s goal of reaching profitability quickly and maintaining strategic agility.

Tom reflected on how VC funding, though valuable in many contexts, can narrow exit paths and dilute founder control—neither of which aligned with Codec’s vision.

Why Fuse Capital and Private Debt?

Partnering with Fuse Capital, Codec secured a private debt facility that delivered flexibility without compromise. Fuse Capital streamlined every step of the process—from refining the business model and financials to sourcing the right lending partners and negotiating a deal tailored to Codec’s needs.

“Fuse really understood what the lenders needed to see and in what format. Super smooth and easy process—not enough good things to say about it.”
— Tom Blah, Founder, Codec

The decision to pursue private debt meant Codec could stay focused on growth without relinquishing control or bending to external timelines.

Impact and Use of Funds

The capital raised was deployed as classic growth funding—fueling Codec’s product development and sales engine, expanding account sizes, and accelerating lead generation. The facility also enabled continued investment in R&D, helping Codec push ahead in the deep-tech space by unlocking new data sources and entering new markets.

By choosing private debt over equity, Codec managed dilution, retained decision-making authority, and built a high-calibre advisory board—on their own terms.

The result? The right amount of capital, at the right time, with a structure that aligned perfectly with their growth strategy.