Venture debt or venture lending or "venture leasing" is a type of debt financing provided to venture-backed companies by specialised banks or non-bank lenders to fund working capital or capital expenses, such as purchasing equipment. Unlike traditional bank lending, venture debt is available to startups and growth companies that do not have positive cash flows or significant assets to use as collateral. Venture debt providers combine their loans with warrants, or rights to purchase equity, to compensate for the higher risk of default.
Read more about Venture Debt: Types of Venture Debt, Financing Terms, See Also
Famous quotes containing the words venture and/or debt:
“I am being given, if I may venture the expression, birth into death, such is my impression. The feet are clear already, of the great cunt of existence.”
—Samuel Beckett (1906–1989)
“Pain and fear and hunger are effects of causes which can be foreseen and known: but sorrow is a debt which someone else makes for us.”
—Freya Stark (1893–1993)