Venture Debt Solutions
Sometimes referred to as ‘growth lending’1, venture debt is a flexible term loan designed to help start-ups and scale-ups (Series A onwards), who are fast-growing but pre-profit. Venture debt is often used to provide runway extension to the next round of fundraising or to reach strategic milestones.
Powering start-ups and scale-ups
Our guide to venture debt highlights some of the key points to bear in mind if you’re considering venture debt as an option for your business.
Our guide to venture debt highlights some of the key points to bear in mind if you’re considering venture debt as an option for your business.
Become a clientWhile venture debt should not be used to replace venture capital investment, when used alongside equity financing, venture debt can allow you to raise capital while reducing dilution.
Become a clientLender receives right, but not the obligation, to purchase equity at future date to share in potential upside if company excels.
Who can apply for venture debt?
Venture debt is typically available to venture capital-backed businesses - whether early-stage companies or more mature companies that are actively choosing to focus on high growth over profit. That means it’s not an option for bootstrapped business, who could consider traditional debt options such as cashflow-based term loans or asset-based lines of credit if they have positive cash flow.
