Fundraising & Equity
Venture Debt Explained
Collated by Harry Prabandham
Curated by Rubric Financial
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What Is Venture Debt?
- Venture debt is a loan (typically 25-35% of the last equity round) provided to VC-backed startups, usually alongside or shortly after an equity fundraise
- It extends runway by 3-6 months without additional dilution, making it a capital-efficient complement to equity financing
- Major venture debt providers include Silicon Valley Bank (now First Citizens), Western Technology Investment, Hercules Capital, and TriplePoint Venture Growth
- Unlike traditional bank loans, venture debt underwriting is based on the strength of your VC backers and growth trajectory, not profitability or assets
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