Venture debt first emerged in the 1970’s in the form of simple equipment financing transactions and were primarily collateral driven until the mid-80s where the concept of using an “equity kicker” to increase yield in order to balance higher risk profiles.
The Genesis of Venture Debt, Globally.
Venture debt first emerged in the 1970’s in the form of simple equipment financing transactions and were primarily collateral driven until the mid-80s where the concept of using an “equity kicker” to increase yield in order to balance higher risk profiles. In 2016, global Venture Capital funds invested $26 billion into companies with at least $2.5 billion representing venture debt, nearly 10% of the overall market.
Here in Southeast Asia and notably Singapore, venture debt financing gain prominence in 2015 and is fast becoming a staple of alternative financing to fill a capital gap left void by traditional financial institutions. This method of funding is particularly effective for rapidly growing innovative businesses in need of external investment to underpin their next stage of growth. Young businesses with a limited or no track record of profitability usually struggle to borrow money from conventional sources, even where they have exciting prospects. Banks are generally wary of the risks posed by these start-ups and tend to steer clear, creating a financing gap which Genesis Alternative Ventures seek to fill.
- 1970s-1980s
Venture debt first emerged in the 1970’s in the form of simple equipment financing transactions and were primarily collateral driven until the mid-80s where the concept of using an “equity kicker” to increase yield in order to balance higher risk profiles.
1970s-1980s
- 1980s-1990s
Silicon Valley Bank (SVB) was founded in 1982; its first office opened in 1983. The bank’s main strategy was collecting deposits from businesses financed through venture capital. It then expanded into banking and financing venture capitalists themselves, and added services aimed at allowing the bank to keep clients as they…
1980s-1990s
Silicon Valley Bank (SVB) was founded in 1982; its first office opened in 1983. The bank’s main strategy was collecting deposits from businesses financed through venture capital. It then expanded into banking and financing venture capitalists themselves, and added services aimed at allowing the bank to keep clients as they matured from their startup phase.
Venture debt (including equipment leasing) made its first appearance in Europe with Kreos (fka EVP), about 15 years after the very first venture capital firms investing into high tech companies emerged in the UK.
- 2000s-2010s
Hercules Capital was founded as a specialty finance firm to serve the needs of both entrepreneurs and public investors, now with over $8.5 billion of capital commitments made to over 450 emerging growth companies since inception. SVB starts venture lending in India and today, the venture debt market has grown…
2000s-2010s
Hercules Capital was founded as a specialty finance firm to serve the needs of both entrepreneurs and public investors, now with over $8.5 billion of capital commitments made to over 450 emerging growth companies since inception.
SVB starts venture lending in India and today, the venture debt market has grown rapidly with many well-known companies like Swiggy, Byju’s, OYO Rooms, Myntra, Big Basket & Yatra having benefited from it. In 2012, SVB JV with Shanghai Pudong Development Bank granted licence. Four years before going public, social networking giant Facebook took $100 million venture debt for building infrastructure, primarily servers.
- 2010s-2018
DBS was one of the first banks in Singapore to offer venture debt as an alternative capital raising option for tech start-ups. Innoven SEA was establised in Singapore that same year. Enterprise SG launched a S$500 million Venture Debt Programme (VDP) to support high-growth enterprises.
2010s-2018
DBS was one of the first banks in Singapore to offer venture debt as an alternative capital raising option for tech start-ups. Innoven SEA was establised in Singapore that same year. Enterprise SG launched a S$500 million Venture Debt Programme (VDP) to support high-growth enterprises.
- 2018
Genesis launched Southeast Asia 1st Venture Debt Fund to serve the needs of entrepreneurs who are seeking alternative debt financing as well as private investors looking to invest into a venture capital asset class with regular yield, equity upside and shorter fund term.
2018
Genesis launched Southeast Asia 1st Venture Debt Fund to serve the needs of entrepreneurs who are seeking alternative debt financing as well as private investors looking to invest into a venture capital asset class with regular yield, equity upside and shorter fund term.
Our Story
Genesis was founded by a partnership with strong passion in venture lending, having started their venture lending career in Southeast Asia for Southeast Asia companies. Our partners have deep experience in Venture Capital, Private Equity, Entrepreneurship, Legal, Corporate – and most critically, Venture Lending.
Genesis serves the needs of entrepreneurs who are seeking alternative financing and private investors looking to invest into a venture capital asset class with different fund return profile and fund life.
We’ve been lending and can structure flexible debt financing to suit entrepreneurs’ growing phases of business and build a successful venture. We are in it together with you.
