The Concept of Venture Debt

Venture debt is primarily a form of debt financing from specialist lenders to pre-profit venture-backed companies with an established business model and clear growth prospects. These emerging companies often view debt financing as a means to augment their cash position without having to give up as significant a portion of their ownership as required by additional equity financing.

It should be noted that venture debt is complementary and not a replacement for early stage equity. It is a form of risk capital with typically a lower cost than equity when structured and deployed properly.

Benefits to Companies when Venture Debt
is properly structured.

Minimum Viable Criteria of Companies
considering to raise Venture Debt

1. Proven Business Model and Scaling

Revenues in excess of US$1+ million and beyond

2. Exciting Growth

Foothold in domestic market and seeking regional market(s) entry

3. Clear financing requirements

Understand what equity and debt can be used to fund in the business

4. Amazing team

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