Venture Debt vs. Venture Capital Financing: Non-Dilutive Loan Strategies for VC-Backed and Emerging Growth Companies
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE webinar will explore the current state of the venture debt market and how businesses can tap into venture debt for growth and revenue while minimizing equity dilution.
Outline
- Venture debt vs. venture capital and current state of the market
- Factors to consider when choosing between venture capital and venture debt
- Strategies for using venture debt
- Advantages and disadvantages of venture debt
- Types of venture debt facilities
- Term loan/growth capital
- Revolving lines of credit
- Equipment financing
- Revenue-based financing
- Distinctions between traditional banks and direct lenders in venture lending
- Substantive deal terms
- Relational fit
- Pricing
- Recent OCC guidance on venture lending
- Key takeaways
Benefits
The panel will discuss these and other key issues:
- What are the latest trends and opportunities in venture debt financing?
- Factors to consider when choosing between venture capital and venture debt
- When is venture debt a good strategy for businesses and how can it be used wisely to fund growth?
- What are the key advantages and disadvantages of venture debt?
- What are the key distinctions between traditional banks and direct lenders in venture lending?
Faculty
Jennifer Post
Partner, Co-Chair Emerging Companies Group
Thompson Coburn
Ms. Post serves as primary outside counsel to entrepreneurs, venture capital funds and operating companies with an... | Read More
Ms. Post serves as primary outside counsel to entrepreneurs, venture capital funds and operating companies with an emphasis on transactional and finance matters. Her practice encompasses general corporate and securities law and commercial finance transactions. Ms. Post represents investors, lenders and emerging companies in venture capital, private equity, lending, M&A and fund formation work. She has a unique niche representing venture debt funds and other direct lenders in secured transactions involving technology, fintech, life sciences, SaaS and consumer brands in the private credit markets.
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Matt Schwartz
Partner, U.S. Finance Practice Group Leader
DLA Piper
Mr. Schwartz has spent more than two decades representing banks and private credit funds in structuring and negotiating... | Read More
Mr. Schwartz has spent more than two decades representing banks and private credit funds in structuring and negotiating a wide range of debt, equity and hybrid debt/equity investments.
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