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Ever wondered how to stretch your startup's runway without giving up more equity? Emily Wu's new article on venture debt might just hold the key. Dive in to see how this financial tool can accelerate your growth. Read the full article: https://lnkd.in/daYk5SsB #StartupStrategy #VentureDebt #Innovation

Hey Siri “Why do companies take on venture debt” “Hmm good question. As a complement to equity financing, venture debt provides growth capital to extend the cash runway of a startup company to achieve the next milestone while minimizing equity dilution for both employees and investors.” Surprisingly this answer is spot on. With the equity markets tightening, I have seen a lot of venture debt activity occurring. Venture debt can be your best friend or worst enemy depending on how it’s utilized. In my opinion, if the venture debt provides enough additional runway to hit key milestones that would allow for a much higher valuation / more attractive investment, it can be a great tool. While the interest rate can be in the upper teens, the equity return on a high growth company should exceed this hurdle rate. On the flip side, if venture debt is utilized solely because equity isn’t available, one can risk losing their entire business upon a default. Curious everyone’s thoughts here and what providers are active in the space now. #venturedebt #cpg #nondilutive David Kirshenbaum Stephen Gaither Jon Blair Elliot Begoun Jordan B. Ryan RouseMichael Movitz

Excellent words of wisdom from entrepreneur and startup expert Tomas Milar of Eqvista. Is fleeting satisfaction of an inflated bank account worth the long term agony of indentured servitude to the vultures of Wall Street? Is the illusion of success worth sacrificing the very soul of your enterprise? Reject the false promise of venture debt and embrace the path of self reliance and fiscal responsibility. Build your company on a foundation of solid Financials, not on a house of cards by empty promises of bankers and lawyers. Seek the guidance & support of organizations like Financial Policy Council & surround yourself with mentors and advisors who share your commitment to ethical, sustainable growth. #financing #fpc #startups https://lnkd.in/g6UiMMcU           

Are you a tech startup looking to optimize your growth strategy? Learn how to balance equity and debt financing for sustainable success in our latest blog. We explore key strategies for maximizing capital without sacrificing control. Techfortune VC offers expert insights and support to help you make informed decisions and achieve long-term growth. Whether you're seeking equity investors or debt solutions, we can guide you through every step. Check out the full blog to explore effective financing options and how Techfortune can be your strategic partner in growth! https://lnkd.in/g7iVZB3s Ron Ranawat Rashmi Khurana Sumesh Menon Rakteem Barooah Toastmaster Smita Patra Zafar Modak #TechStartups #Financing #VentureCapital #Growth

🌟 Unlocking Venture Debt Potential 🌟 Can you predict which startups will transform industries and which will fade away? In venture debt, the answers lie not in historical numbers, but in forward-looking analysis. This article in Venture Capital Journal explores how fundamental analysis identifies exceptional companies and mitigates risks effectively. 👉 Link to article: https://zurl.co/bLeA 👍 Like if you agree. 🎤 Share your thoughts in the comments. ♻️ Think this could help someone? Please repost! #VentureDebt #StartupFunding #FinancialAnalysis #InvestmentStrategy #HighGrowth #TechStartups

Founders: Know your options. 🚀🌟 Sometimes borrowing is better than raising. 💡 Other forms of debt are out there, but this is a good summary of the reasons some founders choose venture debt. 📊 TLDR: It doesn’t dilute equity; it’s easier & cheaper; it doesn’t require a valuation (which might be down at the moment). 📉💸 Whether you're bridging to profitability 🌉 or avoiding a risky bridge round, venture debt can be a strategic tool to maintain control and flexibility in your financing strategy. 🔧🔄 💡 Check out the full insights here: https://ow.ly/MV2J50RCYSZ #startupdevelopment #startup #founder #scaleup

Exploring different ways to access capital is crucial, whether through traditional bank lending, venture capital debt, or equity investors. This is a great starting point for understanding these options.

A great piece on the rise of venture debt as a complement to equity capital. Both equity and debt offer distinct advantages, though their suitability will vary on many factors - such as the business's stage, revenue and cash flow profile, and the intended use of funds.   Equity investors can offer strategic support and governance, unlock valuable networks and generally provide greater investment, while debt capital helps to minimise dilution, though comes with repayment obligations.   Some really great insights from Justin at EVP and my partner, Nathan, on the co-existence of debt and equity raises, and how businesses should consider leveraging both to maximise shareholder value. https://lnkd.in/gr6v2ZrP

“What is venture debt?” is probably the one question that is often asked and discussed, yet is widely misunderstood. Here at Silicon Valley Bank, we know a thing or two about venture debt. If you want to learn about venture debt, you can read about it here. #venturedebt #venturecapital #svb #yessvb

🚀 Advantage of Venture Debt for Growth-Focused Companies 🚀 Minimizes Equity Dilution: Preserve ownership stakes for founders and early investors by raising capital without diluting equity. Faster and More Flexible Funding: Secure capital quickly and flexibly, crucial for startups needing immediate funds for growth. Lower Cost of Capital: Benefit from the predictability and lower cost of debt with fixed interest payments compared to equity financing. No Loss of Control: Maintain strategic control as venture debt lenders do not require board seats or governance rights. Extends Runway: Extend your cash runway, allowing you to reach key milestones before the next equity round, potentially leading to a higher valuation. Performance Insurance: Use venture debt as a financial cushion for unexpected capital needs or delays in milestones, especially in volatile markets or during rapid growth. Complementary to Equity: Leverage venture debt alongside equity financing for a balanced capital structure and more effective use of equity raises. Structural Capital’s Approach Target Company Profile: Strong Business Model and Fundamentals: Proven, scalable business models. Market Expansion Stage or Later: Businesses looking to expand their market presence. Track Record of Consistent Performance: Stable and reliable performance metrics. Supportive Equity Sponsors: Backing from reputable equity investors. Key Financial Metrics: Companies with at least $10 million in annual revenue Minimum of 15% year-over-year growth Stable margins and improving unit economics Clear path to profitability within six quarters Financing Product: Check Size: Financing ranging from $10 million to $100 million or more Security: Structured with various security options, including first lien, subordinated, or split lien arrangements Structure: Typically 2-4 year term loans, with options for incremental capital unlocks and amortization deferrals Use of Proceeds: Funds can be used for growth initiatives, working capital, runway extension, debt refinancing, M&A, and secondary liquidity #VentureDebt #GrowthCapital #StartupFunding #StructuralCapital #Finance #Investment #BusinessGrowth