Venture debt financing how to#

Let’s discuss how Armentum can facilitate venture debt financing for your company. Unmatched Lender Relationships to Secure Venture Debt A warrant agreement, giving the debt provider the right to acquire a small portion of.

Likely would include negative covenants and sometimes also financial covenants. The vast majority of venture-backed companies raise venture debt at some point in their lives from specialized banks such as Silicon Valley Bank. Typical venture debt arrangement consists of: 3-year monthly amortising (can include an interest-only period in the beginning) senior secured term loan, with a fixed interest rate.

Venture debt financing how to#

Armentum has unmatched lender relationships and understands how to navigate the dynamic venture debt market. Venture debt is a type of loan offered by banks and nonbank lenders that is designed specifically for early-stage, high-growth companies with venture capital backing. There is also increased competition with the seemingly never-ending supply of new venture debt funds. Venture debt lenders are willing to assume more risk and invent new ways to grant capital to promising companies. Lender innovation with venture debt continues to avail more options for emerging companies. We’re Different than Other Venture Debt Solution Providers You can trust our expertise as a venture debt lender to assess. A creative approach is necessary to procure the varied and innovative venture debt options that exist in today’s market. Venture debt provides a cost-efficient supplement to the existing capital raised from investors. Venture debt financing is a viable option for promising companies that do not yet have positive cash flow, assets to leverage, a proven credit history, or, in some cases, even revenue.

Young companies do not have to rely solely on dilutive capital from equity investors. Methods of financing for early- and growth-stage companies are no longer following traditional courses.