Venture debt financing is a type of debt provided to early and growth-stage companies, often in the technology, biotech, or innovation sectors. It offers businesses a way to raise capital without giving up additional equity. This is typically achieved through loans or lines of credit with specific terms tailored to the needs of high-growth companies. The debt is often used to finance working capital, purchase equipment, fund research and development, or expand operations.
This guide will cover the basics of venture debt financing, including its features, benefits, risks, and how to secure it.
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