Tough Financial Conditions Belie a Ripe Venture Debt Market
September 5, 2022 by Garage – Business Times
TOUGH market conditions are creating a spike in demand for venture debt among startups. A tighter funding environment along with unfavorable exit conditions in public markets have led to more venture debt requests, even more so than at the onset of the pandemic in 2020.
Venture debt provider Genesis Alternative Ventures has been tracking quarter-on-quarter growth in venture debt requests and is seeing an average of between US$80 million and US$100 million of requests per quarter currently.
Traction among investors for venture debt appears to be growing, as Genesis Alternative Ventures is now raising its second fund, with a target of US$150 million. Half of the funding target has been committed, with 80 per cent of the investors following on from the first fund.
