Why Do Startups Take Venture Debt?

Why Do Startups Take Venture Debt?
Posted on Thu, 9 November 2017 by Scott Orn

Video: Why Would a Startup Take Venture Debt?

At Kruze Consulting, we get tons of questions about venture debt.

Should a startup take it? Is it good for the startup? Well, we think about it as like it’s insurance. It helps you get those extra three to six months of the runway that you might need.

Most series A or series B startups raise 18 months of cash. Getting those extra three to six months can really help you nail that milestone, which allows you to raise your next round.

So, at Kruze Consulting, we do like venture debt, and we encourage our series A and series B companies to take it.


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