Venture debt -
understand the basics

Venture debt is non-dilutive financing provided alongside equity, typically to venture capital-backed companies. It extends runway, supports growth, and adds flexibility without issuing new shares, and is usually structured as a term loan or revolving credit facility.

Venture debt typically makes sense after at least one venture capital equity round, once a company has started generating predictable revenue, and has strong investor backing. It is often used to extend runway, delay the next equity raise, or finance specific growth initiatives.

Venture debt amounts vary by company stage, revenue predictability, and investor backing. We typically advise on debt raises of between €2m and €100m (we can do larger), depending on company fundamentals, growth plans, and lender appetite.

A well-run venture debt process usually takes between 4 and 8 weeks from initial assessment to term sheets, and slightly longer to close - we usually target 3 to 4 months in total. Timing depends on a number of factors, including preparation, lender fit, and deal complexity.

We operate on a success-based fee model, aligned on with founders. These fees range between 1.5% and 3.5%, depending on the loan volume - higher loan volumes incur lower fees. We charge no upfront retainers, with fees payable only once financing successfully closes.