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:
“Had his other friends been as diligent and ardent as I was, he might have been almost entirely preserved. As it is, I will venture to say that he will be seen in this work more completely than any man who has ever yet lived.”
—James Boswell (1740–1795)
“It is a well-settled principle of the international code that where one nation owes another a liquidated debt which it refuses or neglects to pay the aggrieved party may seize on the property belonging to the other, its citizens or subjects, sufficient to pay the debt without giving just cause of war.”
—Andrew Jackson (1767–1845)