GUIDE TO STARTUP DEBT
for technology companies and their founders
Why Venture debt / Revenue-based financing?
Venture Capital financing has been undoubtedly instrumental in financing-high risk technological innovation. However, as technology business models mature and revenues become more predictable - the inherent business risk decreases, begging the question whether some of the start-up / scale-up funding could be cheaper.
Venture Debt providers, and more lately Revenue-Based Financing companies (as well as SaaS loan firms), are the answers to this question, offering to unlock no-dilution financing options. While they will not be suitable for everyone, it makes sense to be aware of the options, which in Europe are still scarce but slowly growing.