4 questions you should ask before raising venture debt
As a founder or CEO, you may be considering venture debt as a way to access the capital you need to extend your runway during these uncertain times. Usually a term loan or line of credit, venture debt is a form of non-dilutive financing that complements equity. It’s often used to help businesses delay raising equity while they continue to grow so that they can ultimately reach a higher valuation. If you’re considering venture debt, here are some questions you should be asking yourself before making your decision: 1. What are the advantages of using venture debt? First off, venture debt is non-dilutive, which means you can maintain control over your business for longer, and can continue driving its strategic direction. Venture debt also creates greater economic value for your co-founders and other supporters, especially should you eventually decide to sell the business. Finally, venture debt is also extremely flexible. You can combine it with senior debt f...
