Venture Debt Advisory

Venture debt advisory covers the debt financing of the venture-backed startups — the term loans and the working capital facilities structured around the venture capital backing, the warrants and the equity kickers, the covenants and the repayment terms, and the fit of the debt with the startup's cash flows and its next equity round. The venture debt is the non-dilutive capital between the equity rounds, and its structuring decides its cost and its safety for the startup.

The venture debt is the debt the venture-backed startup can raise against its equity momentum — the facility from the banks and the venture debt funds, with the interest, the warrants and the covenants, designed to extend the runway without the dilution. The structure is negotiated around the startup's position — the cash flows, the growth, the next round — and its terms decide the cost and the risk of the facility.

The cost of a badly structured venture debt is the covenant breach and the dilution surprise: the repayment that the cash flows could not service, the covenants that the growth could not meet, the warrants that diluted more than the term sheet suggested.

This service is for startups raising venture debt. We assess the debt capacity against the cash flows and the next round, structure the facility — the tenure, the interest, the warrants, the covenants — compare the lender terms, negotiate the documentation, and review the facility as the startup's position changes, so the venture debt serves the runway without the surprises.