Business Capital
Venture Debt
Get non-dilutive financing for growth-stage companies. Venture debt provides capital without giving up equity, perfect for companies with venture capital backing.
What is Venture Debt?
Venture debt is a form of financing specifically designed for growth-stage companies that have received venture capital funding. It provides capital without diluting existing shareholders' ownership stakes.
This type of financing is typically used to extend a company's runway between equity rounds, fund growth initiatives, or provide working capital while maintaining ownership control and avoiding down rounds.
Key Benefits
Common Uses for Venture Debt
Extend Runway
Bridge the gap between equity funding rounds and extend cash runway
Growth Initiatives
Fund product development, market expansion, and sales growth
Working Capital
Support operational needs and cash flow during growth phases
Acquisitions
Finance strategic acquisitions and add-on purchases
Equipment & Technology
Purchase equipment, technology infrastructure, and software
Strategic Projects
Fund specific projects and initiatives without equity dilution
Venture Debt Structure
Term Loan
Typically structured as a term loan with interest-only payments for 12-18 months, followed by principal and interest payments.
Warrant Coverage
Often includes warrants for company equity, typically 5-20% of the loan amount, allowing lenders to participate in upside potential.
Covenants
Financial covenants and reporting requirements, but generally more flexible than traditional bank loans.
Security
Usually secured by company assets, intellectual property, and sometimes personal guarantees from founders.
Typical Terms
Venture Debt Requirements
Venture Backing
Must have institutional venture capital or private equity backing
Revenue
Typically $1M+ in annual recurring revenue or strong growth metrics
Management
Experienced management team with proven execution capabilities
Use of Funds
Clear plan for use of proceeds and path to next equity round
Ready to Get Venture Debt?
Get non-dilutive financing to extend your runway and fund growth initiatives. Connect with venture debt lenders today.