Glossary · Debt
Venture debt
Loans aimed at venture-backed startups, often after a priced round. Lenders bet you will keep raising or become profitable enough to repay.
Related: Series A · Convertible note · Bridge loan · Warrant
A bit more nuance▾
- Cheaper than equity if things go well; painful if growth stalls.
- Covenants and warrants can bite — read the footnotes.
Go deeper▾
Discussion questions▾
- What loan payment would make you lose sleep?
- Why would your VC support or oppose venture debt?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.