AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |
Back to Blog
Venture debt financing1/12/2024 The second reason is, as a startup, you want your valuation to keep going up. So people need alternative forms of financing. One, there isn’t as much venture capital out there. Venture debt is you give me $5 million, and I’m paying you that back plus interest.īen-Achour: And demand for this version of financing is growing, right? Lee: The primary difference between venture debt and venture capital is that with venture capital, you are as a founder giving away a percentage of your company. How is venture debt different? What is it? Because the closer you get to public markets, the harder it’s going to be.īen-Achour: Normally a startup would go to some investors and say, “Hi, can you put your money with us?” Then there is this alternative called venture debt. What I would say is the later stage of a startup you are, the harder it is to raise. Sabri Ben-Achour: Just as a baseline, how hard is it out there right now for startups trying to raise the money they need?Īngela Lee: Depends a little bit on what stage you’re talking about. The following is an edited transcript of their conversation. She joined “Marketplace Morning Report” host Sabri Ben-Achour to talk about how venture debt has gained prominence in the startup funding field. At its most basic level, these are bank loans, and the demand for them is piling up.Īngela Lee is a professor of venture capital at Columbia Business School and founder of the startup investment network 37 Angels. So that has a lot of these embryonic companies turning to a source of funding called venture debt. Venture capital funding for startup companies fell by almost half in the first six months. Last year was difficult for startups - investors were not very interested in forking over their money.
0 Comments
Read More
Leave a Reply. |