“VC funding is now a rare and expensive commodity, and founders are being encouraged to focus again on business fundamentals and capital efficiency. As a result, Venture Debt is now a topic of discussion in most Board meetings, and almost every Startup that’s raising institutional capital (seed to Series D) is thinking about Venture Debt as a meaningful addition to their capital stack.” These are timely and important conversations to be had by founders, management teams, and early investors. And it’s encouraging to see demand for debt continue to increase. But it’s not hard to see why. What’s happening in the industry now can be attributed to a few factors: ✔ We are experiencing a recalibration from the “easy money” era of high valuations. Many venture equity providers are now essentially hoarding capital and waiting for cap tables to self-correct to reasonable levels. ✔ Equity is expensive, especially for late-stage companies. Venture debt has become a more compelling alternative to equity dilution for companies that want to avoid a down round. ✔ Founders are realizing that venture debt is not rescue financing. Rather, companies with consistent revenue and a clear path to profitability are increasingly seeing debt as a means of propelling further growth. While no one can predict the future, we’re very optimistic about the role that debt can (and will) play for late-stage startups throughout the remainder of the year and beyond.
David Spreng’s Post
More Relevant Posts
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Co-Founder and Senior Managing Partner at Impact Partners | Early Stage Investor | Keynote Speaker
Impact Partners client David Spreng, founder, CEO, and CIO of Runway Growth Capital, lays out how as #VentureCapital funding becomes a scarcer and more costly resource, founders are increasingly urged to prioritize business fundamentals and capital efficiency. Consequently, #VentureDebt has become a prevalent topic in boardroom discussions. Now, nearly every startup, from seed to Series D stages, considering institutional capital is also contemplating Venture Debt as a crucial supplement to their financial strategies.
“VC funding is now a rare and expensive commodity, and founders are being encouraged to focus again on business fundamentals and capital efficiency. As a result, Venture Debt is now a topic of discussion in most Board meetings, and almost every Startup that’s raising institutional capital (seed to Series D) is thinking about Venture Debt as a meaningful addition to their capital stack.” These are timely and important conversations to be had by founders, management teams, and early investors. And it’s encouraging to see demand for debt continue to increase. But it’s not hard to see why. What’s happening in the industry now can be attributed to a few factors: ✔ We are experiencing a recalibration from the “easy money” era of high valuations. Many venture equity providers are now essentially hoarding capital and waiting for cap tables to self-correct to reasonable levels. ✔ Equity is expensive, especially for late-stage companies. Venture debt has become a more compelling alternative to equity dilution for companies that want to avoid a down round. ✔ Founders are realizing that venture debt is not rescue financing. Rather, companies with consistent revenue and a clear path to profitability are increasingly seeing debt as a means of propelling further growth. While no one can predict the future, we’re very optimistic about the role that debt can (and will) play for late-stage startups throughout the remainder of the year and beyond.
Temperature Check: How are startups thinking about debt In 2024? - Hypepotamus
https://hypepotamus.com
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Impact Partners client David Spreng, founder, CEO, and CIO of Runway Growth Capital, lays out how as #VentureCapital funding becomes a scarcer and more costly resource, founders are increasingly urged to prioritize business fundamentals and capital efficiency. Consequently, #VentureDebt has become a prevalent topic in boardroom discussions. Now, nearly every startup, from seed to Series D stages, considering institutional capital is also contemplating Venture Debt as a crucial supplement to their financial strategies.
“VC funding is now a rare and expensive commodity, and founders are being encouraged to focus again on business fundamentals and capital efficiency. As a result, Venture Debt is now a topic of discussion in most Board meetings, and almost every Startup that’s raising institutional capital (seed to Series D) is thinking about Venture Debt as a meaningful addition to their capital stack.” These are timely and important conversations to be had by founders, management teams, and early investors. And it’s encouraging to see demand for debt continue to increase. But it’s not hard to see why. What’s happening in the industry now can be attributed to a few factors: ✔ We are experiencing a recalibration from the “easy money” era of high valuations. Many venture equity providers are now essentially hoarding capital and waiting for cap tables to self-correct to reasonable levels. ✔ Equity is expensive, especially for late-stage companies. Venture debt has become a more compelling alternative to equity dilution for companies that want to avoid a down round. ✔ Founders are realizing that venture debt is not rescue financing. Rather, companies with consistent revenue and a clear path to profitability are increasingly seeing debt as a means of propelling further growth. While no one can predict the future, we’re very optimistic about the role that debt can (and will) play for late-stage startups throughout the remainder of the year and beyond.
Temperature Check: How are startups thinking about debt In 2024? - Hypepotamus
https://hypepotamus.com
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🚀 Venture Debt Instruments: A Deep Dive 🚀 I just published an article on my Medium space, breaking down the intricacies of venture debt instruments. Many are familiar with equity-based venture capital, but venture debt plays an equally strategic role in the startup ecosystem. 🔍 Key Highlights: 1. Venture debt provides flexibility for startups, allowing them to raise funds without immediately diluting ownership. 2. Instruments such as Convertible Notes, SAFE, and Venture Debt cater to the specific needs of a startup's growth trajectory. 3. While debt instruments offer speed and efficiency in fundraising, they also come with potential risks and considerations. Understanding the balance between immediate financial needs and long-term equity goals is crucial for startups and investors alike. For a comprehensive understanding of these instruments and their role in venture capital, head over to my latest article 🔗 https://lnkd.in/eCBAB3Nq If you find value in my content, consider subscribing to stay updated. Your feedback, thoughts, and ideas are always appreciated! #VentureCapital #Startups #startupfunding #Funding #BusinessInsights #debtfinancing #vcfunding #capitalraising
Venture Debt Instruments: The Absolute Essentials You Must Know
medium.com
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Co-Founder and Senior Managing Partner at Impact Partners | Early Stage Investor | Keynote Speaker
David Spreng, founder, CEO and CIO of Runway Growth Capital, just penned an eye-opening op-ed for Benzinga. He's shedding light on a game-changer for startups: Venture Debt. Why is it a big deal? Venture debt is less dilutive than traditional equity financing, offering founders and early investors a golden opportunity to hold onto a larger share of their company. This strategic move is crucial for those looking to steer their ship with full control and aim for maximum long-term returns. A client for nearly five-years, take a dive into David's insights and discover how Venture Debt could be the key to your startup's success and independence. Full article: https://lnkd.in/d8NPzB8q Impact Partners #VentureDebt #StartupOwnership #DavidSpreng #RunwayGrowthCapital #VentureLending #VentureFinancing #GrowthCapital #VentureCapital #VC #PrivateEquity #PE
The Rising Popularity of Venture Debt, Structured Equity and Advice for Founders
benzinga.com
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When paired with equity funding, venture debt can help #startups fuel growth with non-dilutive capital. Read this new article from Silicon Valley Bank for a quick overview. https://lnkd.in/gWJwp9kE
What is Venture Debt | Silicon Valley Bank
svb.com
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When paired with equity funding, venture debt can help #startups fuel growth with non-dilutive capital. Read this article from Silicon Valley Bank for a quick overview. https://lnkd.in/guEVwfpq
What is Venture Debt | Silicon Valley Bank
svb.com
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David Spreng, founder, CEO and CIO of Runway Growth Capital, just penned an eye-opening op-ed for Benzinga. He's shedding light on a game-changer for startups: Venture Debt. Why is it a big deal? Venture debt is less dilutive than traditional equity financing, offering founders and early investors a golden opportunity to hold onto a larger share of their company. This strategic move is crucial for those looking to steer their ship with full control and aim for maximum long-term returns. A client for nearly five-years, take a dive into David's insights and discover how Venture Debt could be the key to your startup's success and independence. Full article: https://lnkd.in/dRbgB4SB Impact Partners #VentureDebt #StartupOwnership #DavidSpreng #RunwayGrowthCapital #VentureLending #VentureFinancing #GrowthCapital
The Rising Popularity of Venture Debt, Structured Equity and Advice for Founders
benzinga.com
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📘 Given all the activity in the space hitherto, I see a surprising level of unawareness around venture debt in the ecosystem. Hence, happy to share some insights in my latest blog post on Venture Debt, which offers an alternative funding route for startups, often overlooked but increasingly crucial. Delve into key types of VD, use cases, repayment structures, differences against other forms of debt and venture financing and risk mitigation tools to price a venture credit. Plus, some notable players in the venture debt market. Let's goo! #VentureDebt #StartupFunding #VCInsights 🚀 https://lnkd.in/eB6PkhJb
The VC Analyst Handbook - Venture Debt
voixvaluations.blogspot.com
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🚀 Consider Venture Debt for Your Startup Funding 🌱 Founders, as the funding landscape shifts, venture debt can be a strategic choice. Risto Rossar, CEO of Insly, shared some key insights: 🎛 Essentials: Venture debt works with predictable revenue, reasonable growth, and a path to profitability. 💡 Venture Debt vs. Equity: In today's market, it offers faster, cost-effective access to funds for smaller amounts and lower-risk strategies. 📚 Financing Structure: Prioritize a flexible structure that aligns with your cash flow. 🔍 Scrutinize Base Case: Lenders seek realistic growth; expect financial scrutiny and build trust. 📆 Relationship Matters: Ensure compatibility with your lender for long-term collaboration. We work with a number of venture funds, and have placed Interim & Fractional CFO's into high growth businesses where they can play a major role in raising essential funds for cash runway! 📌 Venture debt complements equity funding for startups with steady growth and risk management! #Startup #VentureCapital #VentureDebt #Investment
Raising venture debt as an early-stage business – when is the right time?
bmmagazine.co.uk
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When paired with equity funding, venture debt can help #startups fuel growth with non-dilutive capital. Read this article from Silicon Valley Bank for a quick overview. https://lnkd.in/gNbXwF_4
What is Venture Debt | Silicon Valley Bank
svb.com
