VENTURE DEBT

Venture debt refers to a variety of debt financing products offered to companies in an early growth stage or when they are capital-backed. Venture debt is generally structured as a three-year term loan with warrants for company stock

WHO IS THIS FOR?

Start-ups and growing companies

Companies that do not have positive cash flows

Companies that do not have significant assets to use as collateral

KEY BENEFITS

Lesser equity dilution for entrepreneurs and investors

It does not require a valuation to be set for the busines

No board seats required for venture lenders

The due diligence process is typically less exhaustive compared to equity