Venture Debt

정의

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.

투자유치 시 활용 방법

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

자주 묻는 질문

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.

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