venture debt

venture debt

Venture debt is a type of debt financing obtained by early-stage companies and startups. This type of debt financing is typically used as a complementary method to equity venture financing. Venture debt can be provided by both banks specializing in venture lending and non-bank lenders. Venture debt can be a viable alternative to equity venture financing. Similar to other methods of debt financing, a primary benefit is preventing the further dilution of the equity stake of a company’s existing investors, including its employees.