WHAT IS VENTURE DEBT?
Venture debt is a financing tool that is complimentary to venture capital equity investment and allows companies to borrow money at any stage from series-A rounds to pre-IPO, even though they would not be creditworthy from a traditional banking perspective (e.g. burning cash, loss making, short corporate history). Typically, a venture lender will take equity warrants and/or options as part of the financing package, which helps to align the interests of the venture lender with management and investors.
