Why Do Startups Take Venture Debt?

Thu, 9 November 2017 - 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.

Kruze Consulting is a leading CPA firm only serving funded startups. If you are a funded startup, choose Kruze Consulting’s team of CPAs, bookkeepers, CFOs, former IRS tax auditors, and venture experts. The firm handles all things Accounting, Tax, Finance, & HR: interim CFO Consulting, financial modeling, annual taxes, R&D tax credit studies, venture debt consulting, 409A reporting, bookkeeping, AR/AP, and Seed/Series A/B Fundraising Preparation. Contact Kruze today!

 

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