Sometimes referred to as ‘growth lending’1 - Venture Debt is a flexible term loan designed to help start-ups and scale-ups (typically Series A, B, and C), who are fast-growing but pre-profit. Venture debt is often used to provide runway extension to the next round of fund raising or to help reach strategic milestones.
Read more about the criteria to be considered for Venture Debt
Venture debt is a powerful tool to grow your business - But what is it, how is it different to equity, and who is eligible? This article answers those pressing FAQs.
Venture debt can accelerate growth, but it’s important to choose the right time to take debt on. Here are some key questions to ask if you’re considering debt.
How do these financing options work together? Venture debt can only be unlocked by venture-backed businesses. But what other aspects should you consider before taking on 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.
