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:
““If Steam has done nothing else, it has at least added a whole new Species to English Literature ... the booklets—the little thrilling romances, where the Murder comes at page fifteen, and the Wedding at page forty—surely they are due to Steam?”
“And when we travel by electricity—if I may venture to develop your theory—we shall have leaflets instead of booklets, and the Murder and the Wedding will come on the same page.””
—Lewis Carroll [Charles Lutwidge Dodgson] (1832–1898)
“Man’s pity for himself, or for his son,
Always premising that said son at college
Has not contracted much more debt than knowledge.”
—George Gordon Noel Byron (1788–1824)