Glossary · Debt
Mezzanine financing
Hybrid financing — riskier than a bank loan, cheaper than pure equity — often used late-stage before an IPO or buyout. It can convert or come with warrants.
Related: Venture debt · Initial public offering (IPO) · Series B
A bit more nuance▾
- Terms vary widely; “mezz” is a bucket, not one standard contract.
- Common in buyouts; less common for tiny seed startups.
Go deeper▾
Discussion questions▾
- At what scale does mezzanine even enter the conversation?
- What covenants would you refuse on principle?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.