What Is Venture Debt?1
Venture debt financing is a loan designed to extend the runway for fast-growing companies. Our venture debt bankers can advise you on the many benefits of venture funding after an equity round. We’ll also help you explore how you might combine venture debt with other funding structures, such as Asset-Based Lending, to make the most of your opportunities.
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Preserves control: Venture debt offers economic upside for investors, founders and employees as the least dilutive early-stage financing option.
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Extends your company’s cash runway: Venture debt funding secures time for founders to reach value milestones.
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Offers a “bridge” between equity rounds: Rather than issuing equity to finance upcoming growth, your company may be able to raise equity at a higher valuation after a critical milestone has been achieved (further minimizing dilution).
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Supplements existing equity: Venture debt allows founders to leverage venture capital investments and preserve investors’ dry powder for your company’s future needs.
Our Venture Financing Structures1
When venture capital investments have taken your company far, but you still have further to go, venture debt can make that initial capital more efficient. You can benefit from the Startup Banking services your company needs, with one point of contact who works with you as your company grows. Plus, you’ll find a set of sophisticated banking services to meet your evolving needs.
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Par value: We offer financing up to $50 million or potentially more with specific lenders or syndicates.
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Total duration: Our venture debt financing can extend up to 60 months, compared to the industry-standard three-year term.
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Amortization structure: Venture financing has an initial interest-only period of up to 36 months, in most cases, with level amortization after that.
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Costs and fees: We evaluate the coupon, facility and final payment fee on an all-in basis. Warrants or success fees typically range from 2% to 4%.
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Security: Venture debt is most often secured by a lien on assets other than intellectual property. In some cases, a negative pledge on intellectual property is available. Other company-specific structures or carve-outs can be included.
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Lines of credit: Companies can arrange lines of credit secured by accounts receivable, inventory, or property, plant and equipment (PP&E).
Complete Banking Solutions1
One bank relationship manager who understands you and your business means better solutions to help your company grow — without the need to introduce yourself again and again. We offer the power of full-service business banking backed by the intelligence of our innovation experts.
Contact Our Team
Reach Our Venture Debt Specialists
About Us
Contact Us
We understand startups. Our roots are in Silicon Valley, and today we have locations in innovation hubs across the U.S. With us, you’ll find strong resources and expert banking for growing companies.
1 East Washington Street
Suite 1400
Phoenix, AZ 85004
United States
1. All offers of credit are subject to credit approval, satisfactory legal documentation, and regulatory compliance. Borrowers are responsible for any appraisal and environmental fees plus customary closing costs, including title, escrow, documentation fees and may be responsible for any bank fees including bridge loan, construction loan, and packaging fees.