Venture Debt
Definition
Venture debt is a loan to a venture-backed startup, typically sized against the last equity round and repaid over three to four years, usually with small equity warrants attached.
Wie es im Fundraising vorkommt
Founders layer venture debt onto an equity round to extend runway 20 to 30 percent with minimal dilution.
Häufig gestellte Fragen
When is venture debt a good idea?
Right after a strong equity round, as insurance runway toward clear milestones; it is dangerous as a substitute for equity a company cannot raise.
What are the risks?
Covenants and repayment obligations bind in downturns exactly when cash is tight; a lender’s remedies can force bad outcomes.
Verwandte Begriffe
Setzen Sie diesen Begriff ein
Definitionen gewinnen nur dann Verhandlungen, wenn Sie sich in einer befinden. Finden Sie die Investoren, die Ihre Phase finanzieren, und beginnen Sie das Gespräch.
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