When is venture debt right for you?
Venture debt is widely discussed in startup circles, but is often misunderstood. If you are a growing, venture-backed startup, find out if venture debt may be right for you.
How venture debt works
Venture debt is a loan designed for fast-growing, investor-backed startups. It’s most often secured during, or soon after, an equity round — and is typically used to extend runway to the next round.
SVB banks 50% of US venture capital-backed companies with IPOs in 2017*
* Based on NVCA Data
How do startups benefit?
Venture debt reduces the capital needed to fund operations and protects against operational glitches and unforeseen capital needs.
of startup founders told SVB's 2018 Startup Outlook Survey that they expect their next round of funding to come from venture capitalists