Venture Debt - Page 2

Streamline your SVB loan or line of credit payoff with this checklist covering required documents, timing, and best practices for a smooth closing process.

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

The punch line here is that every single account on the balance sheet needs to be reconciled, not just the bank and the credit cards.

Learn how venture debt works in a downround, its impact on dilution and covenants, and when founders should avoid adding debt to a struggling cap table.

Understand venture debt deposits and learn why lenders require cash set-asides when you sign the term sheet, plus how to negotiate.

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.

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

Understand bank cash deposit requirements—learn why banks ask for deposits, how it affects startups, and what to prepare for compliance.

This has become a really critical question since interest rates are going up and cash management is becoming even more important.

Silicon Valley Bank (SVB) had a liquidity/solvency crisis in the middle of March 2023, and was taken over by the Federal Deposit Insurance Corporation (FDIC).

Secure a venture debt forward commitment to increase financing certainty and strategically bridge to your next equity round.

Stop “borrowing your own money”—learn why founders get stuck with cash traps (like holds and reserves) and how to protect runway.