Venture Debt

Définition

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.

Comment cela se présente dans le financement

Founders layer venture debt onto an equity round to extend runway 20 to 30 percent with minimal dilution.

Questions fréquemment posées

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.

Mettez ce terme en pratique

Les définitions ne gagnent des négociations que lorsque vous y êtes. Trouvez les investisseurs qui financent votre étape et commencez la conversation.

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