venture debt

Venture debt is a type of financing provided to early-stage or growth-stage companies that already have some venture capital backing. It’s essentially a loan that helps these companies raise additional capital without giving up more ownership. Typically, venture debt is used to fund expansion, manage cash flow, or acquire assets, and is often combined with equity funding. It usually comes with higher interest rates due to the higher risk involved and is repaid over time, providing the company quick access to funds while preserving equity stakes.