More posts on "venture debt" Tag

What are Your VC’s Return Expectations Depending on the Stage of Investment?

What are Your VC’s Return Expectations Depending on the Stage of Investment?
Posted on Fri, 29 March 2024 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

It is incredibly important that startup founders know what their VCs are going for so that they can be aligned and make smart decisions.

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What Happens to Venture Debt in a Downround?

What Happens to Venture Debt in a Downround?
Posted on Sun, 7 January 2024 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

When a startup goes through a downround, things can be very painful. Typically a downround will impact the founders a lot more than the venture capital investors , but if your startup has venture debt then things could become even more difficult. So what happens to venture debt when a startup goes through a downround, and what can you do at your company to work through that happening?

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Why Do Lenders Ask For Deposits on Venture Debt Deals?

Why Do Lenders Ask For Deposits on Venture Debt Deals?
Posted on Tue, 2 January 2024 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

Deposits are an important part of venture debt. It’s normal for part of the deal to require you send the lender, say, $20,000-$30,000. So why are deposits required by your lender when you sign a venture debt term sheet?

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Warrant Coverage Venture Loans

Warrant Coverage Venture Loans
Posted on Tue, 19 December 2023 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

The rationale for a warrant coverage or a little bit of equity upside for the lender is that they're taking a lot of risk here.

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How do venture debt overhangs affect equity funding?

How do venture debt overhangs affect equity funding?
Posted on Sun, 17 December 2023 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

Venture debt overhangs are an issue we are seeing more often, and they are frequently blocking the next equity funding round for startups.

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How Does the US Government Issuing $1 Trillion in Debt Affect Startups?

How Does the US Government Issuing $1 Trillion in Debt Affect Startups?
Posted on Sun, 27 August 2023 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

What does the US Federal Government issuing $1 trillion of debt mean for the startup financing environment?

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What is a forward commitment in venture debt?

What is a forward commitment in venture debt?
Posted on Sun, 27 November 2022 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

For startups using venture debt can be a very helpful way to gain additional financing they need, to extend their runways or bridge to the next financing round. In order to strategically utilize venture debt for the best outcome, arranging a forward commitment is a smart move.

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Venture debt: Don’t borrow your own money

Venture debt: Don’t borrow your own money
Posted on Sun, 5 June 2022 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

Kruze Consulting's COO, Scott Orn, talks about the risks of Venture Debt and how to make sure you don't end up borrowing your own money!

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The value of having a branded VC lead your startup’s round

The value of having a branded VC lead your startup’s round
Posted on Tue, 31 May 2022 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

Kruze Consulting's COO, Scott Orn, discusses the value of having a branded Venture Capital firm lead your startup’s round and its several benefits.

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Closing the Deal: The Final VC Meeting

Closing the Deal: The Final VC Meeting
Posted on Mon, 13 December 2021 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

Kruze Consulting's COO, Scott Orn, presents his guide to closing the deal in your startups final venture capital meeting, as it can be very intimidating.

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Quick Guide to Matching Assets to Debt

Quick Guide to Matching Assets to Debt
Posted on Tue, 27 July 2021 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

Kruze Consulting's COO, Scott Orn, gives a quick guide to matching your startup's assets to the right kind of debt including revolvers and term debt.

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Does Crowdfunding Capital Raise Discourage Future VC Investment?

Does Crowdfunding Capital Raise Discourage Future VC Investment?
Posted on Sun, 23 May 2021 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

Does raising capital by crowdfunding discourage future venture capital investments? A guide to different ways to raise capital at startup.

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What is an Orphaned VC Deal?

What is an Orphaned VC Deal?
Posted on Tue, 27 April 2021 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

Kruze Consulting's COO, Scott Orn, answers the question 'what is an orphaned Venture Capital deal?' and explains how it might affect your startup

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3 Tips for Startup Venture Capital Funding

3 Tips for Startup Venture Capital Funding
Posted on Tue, 30 March 2021 by 4d886ec3-5690-47fc-b77c-d1f3754b1a35

Startup founders, are you looking to raise venture capital? Here are 3 tips for startup venture capital funding.

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Where Do VCs Get Their Money?

Where Do VCs Get Their Money?
Posted on Tue, 16 March 2021 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

Where do VCs get their money from? Everyone knows that entrepreneurs who are doing a startup have to go to pitch venture capitalists.

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Understanding VC’s thought process during the COVID crisis

Understanding VC’s thought process during the COVID crisis
Posted on Mon, 29 June 2020 by 4d886ec3-5690-47fc-b77c-d1f3754b1a35

The COVID crisis has dramatically slowed down early-stage venture activity.

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Fintech Equity & Debt Staircase

Fintech Equity & Debt Staircase
Posted on Tue, 28 April 2020 by 4d886ec3-5690-47fc-b77c-d1f3754b1a35

Kruze Consulting's VP of FP&A, Healy Jones, explains the meaning of Fintech Equity & Debt Staircase and why Fintech companies raise capital.

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Venture Lenders Asking for Right to Invest Equity

Venture Lenders Asking for Right to Invest Equity
Posted on Fri, 3 April 2020 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

Kruze Consulting COO, Scott Orn, discusses why Venture Lenders will ask for Equity Investment Rights when they they have made a loan to a good startup.

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Venture Debt Pre-Payment Penalty

Venture Debt Pre-Payment Penalty
Posted on Fri, 3 April 2020 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

Kruze Consulting's COO, Scott Orn, discusses what a pre-payment penalty might look like in a venture debt deal and how it could come about at startup.

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2020 VC Due Diligence Trends

2020 VC Due Diligence Trends
Posted on Thu, 27 February 2020 by 4d886ec3-5690-47fc-b77c-d1f3754b1a35

Kruze Consulting's VP of FP&A, Healy Jones, shares 2020's Venture Capital due diligence trends that venture capitalists do prior to completing a deal.

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Tech CFOs Name the Hottest New Tech Cities In 2020

Tech CFOs Name the Hottest New Tech Cities In 2020
Posted on Tue, 18 February 2020 by 4d886ec3-5690-47fc-b77c-d1f3754b1a35

Read about the top cities that Tech CFOS have named the next top tech hubs in 2020, from a survey conducted by Kruze Consulting involving 30 Bay Area CFOS.

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How to Pick an Accountant for a Venture-Backed Delaware C-Corp

How to Pick an Accountant for a Venture-Backed Delaware C-Corp
Posted on Mon, 18 November 2019 by 4d886ec3-5690-47fc-b77c-d1f3754b1a35

Kruze Consulting is 100% focused on helping seed and venture funded Delaware C-Corps with their accounting needs.

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Free Resource for Startups Raising Venture Capital

Free Resource for Startups Raising Venture Capital
Posted on Tue, 19 March 2019 by 4d886ec3-5690-47fc-b77c-d1f3754b1a35

Kruze Consulting has compiled the ultimate Finance, Tax and HR Due Diligence Checklist, free for Startups to download and use in their fundraising efforts.

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Why do VCs like to invest in Delaware C-Corps?

Why do VCs like to invest in Delaware C-Corps?
Posted on Mon, 28 January 2019 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

Today we're answering the question: Why do VC's prefer to invest in Delaware C-Corporations instead of LLC's or S-Corps.

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Featured Service - TriplePoint

Featured Service - TriplePoint
Posted on Sun, 7 October 2018 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

TriplePoint Capital is a Sand Hill Road-based global financing provider to high growth venture capital-backed companies throughout their lifespan, providing customized debt financing, leasing, and direct equity investments.

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Featured Service - SVB

Featured Service - SVB
Posted on Tue, 25 September 2018 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

Silicon Valley Bank helps innovative companies and their investors move bold ideas forward, fast.

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Dangers of Venture Debt

Dangers of Venture Debt
Posted on Fri, 10 August 2018 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

Kruze Consulting's COO, Scott Orn, on the dangers of venture debt and how to lower the risk of things going wrong when using venture debt for your startup.

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Venture Lending Common Events of Default

Venture Lending Common Events of Default
Posted on Wed, 8 August 2018 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

Kruze Consulting's COO, Scott Orn, presents a guide to venture lending and the common events of default that you can encounter in venture debt.

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Fund Venture Lenders vs. Bank Venture Lenders

Fund Venture Lenders vs. Bank Venture Lenders
Posted on Mon, 30 July 2018 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

Today we're talking about fund venture lenders vs. bank venture lenders. Now, banks, they're always really really cheap. They have low interest rates and low warrant coverage and that's partially because they are lending out other companies’ deposits. They take one company's deposits and lend it out to another. That's how banks work in just about everything. So that way their cost of funding is very very low.

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Venture Debt Scouting Report: Square One Bank

Venture Debt Scouting Report: Square One Bank
Posted on Fri, 9 February 2018 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

This is your scouting report for Square 1 Bank and their venture debt services.

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Venture Debt Scouting Report: Comerica

Venture Debt Scouting Report: Comerica
Posted on Fri, 9 February 2018 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

Comerica is a huge venture lending firm, they've been doing it for a very long time, dating all the way back to when they acquired Imperial Bank.

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Venture Debt Scouting Report: City National Bank

Venture Debt Scouting Report: City National Bank
Posted on Fri, 9 February 2018 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

City National Bank is a great group to work with. They're led by Rod Werner, who's the consummate Silicon Valley deal-maker.

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Venture Debt Scouting Report: Bridge Bank

Venture Debt Scouting Report: Bridge Bank
Posted on Fri, 9 February 2018 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

Kruze Consulting's COO, Scott Orn's Venture Debt scouting report on Bridge Bank and what you should know about Bridge Bank as a Venture Debt lender.

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Kruze Consulting’s Role in Placing Venture Debt

Kruze Consulting’s Role in Placing Venture Debt
Posted on Fri, 9 February 2018 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

All of our clients know to call us but there's a lot of people out there or a lot of startups that don't know that we do this on an ad hoc basis.

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Venture Debt Scouting Report: WTI

Venture Debt Scouting Report: WTI
Posted on Tue, 6 February 2018 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

Kruze Consulting's COO, Scott Orn, talks about Western Technology Investment, their services and using them for venture debt scouting reports.

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Venture Debt Scouting Report: Triplepoint

Venture Debt Scouting Report: Triplepoint
Posted on Tue, 6 February 2018 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

Triplepoint's a very large fund, a very aggressive lender in the venture debt marketplace.

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Venture Debt Scouting Report: SVB

Venture Debt Scouting Report: SVB
Posted on Tue, 6 February 2018 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

SVB is one of the largest players in the venture debt market. They've been servicing start-ups for many, many years.

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Minimum Cash Requirement in Venture Debt Deals

Minimum Cash Requirement in Venture Debt Deals
Posted on Tue, 6 February 2018 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

A minimum cash requirement is something that usually a bank will ask the company to do.

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Material Adverse Change as Event of Default in Venture Debt

Material Adverse Change as Event of Default in Venture Debt
Posted on Tue, 6 February 2018 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

Material adverse change clauses, or MAC, is the one term you do not want to have on your term sheet.

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Funding MAC (Material Adverse Change) in Venture Debt

Funding MAC (Material Adverse Change) in Venture Debt
Posted on Tue, 6 February 2018 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

We talked about MACs as an event of default. You definitely want to avoid those. But almost equally dangerous is the funding MAC.

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Final Payments in Venture Debt

Final Payments in Venture Debt
Posted on Tue, 6 February 2018 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

The idea behind a final payment is that the lender will backload some of the interest.

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Startup's Due Diligence Information Venture Lenders Ask For

Startup's Due Diligence Information Venture Lenders Ask For
Posted on Tue, 14 November 2017 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

The first thing they're going to ask for is your historical financials.

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Why Do Startups Take Venture Debt?

Why Do Startups Take Venture Debt?
Posted on Thu, 9 November 2017 by 3c9a7185-6493-4274-94b4-bfd36ff4820d

At Kruze Consulting, we get tons of questions about venture debt. Should a startup take it? Is it good for the startup?

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