Debt has always been a critical component of the funding stack for private equity backed companies. While venture capital backed companies typically have a senior debt facility (often unused), and may also use debt for bridge financing, the strategic potential of debt financing is generally underappreciated by founders and sometimes even their funders.
This is partly due to the fact that venture capital gets disproportionate air time and has now become synonymous with achieving success. The reality, of course, is that success is measured when you exit, and the proceeds you get to take home from that exit. This is where the strategic value of venture debt comes into play. Venture debt can enable founders to avoid premature valuation and dilution and retain strategic and economic control of their business.
Watch this webinar to learn:
What venture debt is and how it differs from traditional equity capital
The main advantages of using venture debt as a compliment to traditional equity capital
If you qualify for venture debt and if it’s right for your business
What to look for when choosing a venture debt partner