Venture Debt are loans tailored to the needs and the risks associated with companies that have raised equity from venture capital firms or similar institutional sources.
Why Venture Debt?
The core advantage of venture debt is that, unlike equity, it is less dilutive for founders and investors while allowing the business to pursue further growth. It is appropriate for companies with a proven business model that have received institutional equity capital and would like to supplement the existing equity financing to accelerate revenue growth, fund inventory or product launch or as a bridge to a liquidity event such as IPO.
- Alternative to equity dilution
- Customised terms
- Swift execution timelines
- Increase of planning security
- Flexible utilisation and payback