March 5, 2014 - Many entrepreneurs have heard horror stories about taking on venture debt. Whether a lender fell asleep at the wheel, a borrower painted too rosy a picture about operating progress, and/or an investor had a change of heart, these horror stories tend to end the same way – with a lender sweeping cash, a borrower unexpectedly ceasing operations, vendors taking legal action, and Board members vowing never to do another venture debt deal.
February 24, 2014 - In the last installment of this series on venture debt, I wrote about the difference between traditional middle market lenders and “venture lenders” – who provide debt financing to pre-profit companies with little in the way of tangible assets. I also talked about the various financing solutions that venture lenders provide, such as loans that bridge to a startup’s next equity round, provide growth capital for new hires, etc. In this installment, I’ll talk about typical venture debt terms and the implications of each.
February 5, 2014 - Venture capital isn’t the only funding option for startups. Vice President Andy Weyer explores the different types of debt financing that venture banks provide to growing technology and life sciences companies throughout their life cycle.