Transparency

Update: An index makes things so much easier to find. The bottom of this post has links to the Debt for Startups posts.

Venture debt is an important source of capital for startups. It has been available in the US for thirty years and in Europe for nearly twenty. Startups have borrowed billions of dollars/pounds/euros of venture debt.

Despite its importance and widespread use there is surprisingly little written about this form of growth finance.

I've spoken with CEOs, CFOs and VCs who are highly knowledgable about tech companies, how they work and the challenges they face. But venture debt is one area where they have a lot of questions.

Venture lending is opaque like venture equity was maybe ten years ago. Lenders know a lot more about it than entrepreneurs and VCs. This can't be helpful to companies.

I'd like to help fix it - to bring some transparency to venture lending.

A few weeks back I started drafting what I thought would total maybe a half-dozen posts. But every topic touched on other topics which means there could a lot to talk about. 

The next several posts will cover the basics.

Please ask questions in the comments. And if there is anything you would like covered please add that to the comments too.

- Craig.

Here is an index of links to the posts in our Debt for Startups series:

Types of debt - line of credit

Types of debt - term debt

Types of debt - the MRR line

Types of debt - venture debt

Using venture debt - extending the cash runway

Using venture debt - the insurance policy

Using venture debt - preventing a bridge round

Using venture debt - acquisitions or capital expenditures

Using venture debt - the in-betweener

Using venture debt - to avoid setting a valuation

Using venture debt - bridging to profitability