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What Is Venture Debt?
Report

What Is Venture Debt?

CB Insights, 2020


Editorial Rating

7

Qualities

  • Innovative
  • Overview
  • Background

Recommendation

A new type of financing, venture debt, is gaining popularity with start-up firms. Investors lend them capital, imposing less stringent requirements than those of a conventional bank loan. The appeal for company founders is their ability to retain ownership without sacrificing valuable equity. In this incisive overview, professionals at CB Insights explore venture debt, its pros and cons, differences from venture capital, and future direction. Entrepreneurs, executives and investors will discover some keen insights in this smart report.

Take-Aways

  • Venture capital trades cash for an ownership position in a start-up company; venture debt provides loans with little to no equity transfer.
  • Venture debt carries relatively low risk for lenders.
  • The venture debt market is gaining momentum.

About the Author

CB Insights is a technology consulting and market intelligence firm.