
Venture Debt
One of the first things that Finance Directors, new to start-up life, stumble across is Venture Debt. In part, this is because senior Finance hires will often arrive not long after a substantial equity round, and that happens to be one of the optimal times for a tech business to raise venture debt.
Venture debt is a form of debt financing, typically a non-convertible, senior secured loan, offered to venture-backed businesses. It serves as a tool to complement equity financing and usually extends the runway from the most recent round.
When compared to other banking products Venture Debt is an offering for those with low, but fast-growing revenues and where cashflow remains negative overall. Typically, it’s exclusively available to a venture-backed business, which is fundamental to the offering as typical banking requirements around cashflow generation are not necessary.


