What is venture debt?

For start-up and pre-profit, high-growth companies, funding is a critical factor for success.

• Venture Debt = Venture Capital + Debt
  • Introduced in the USA in the early 80’s to create an efficient financing tool for entrepreneurial growth companies in early to mid stages
  • Venture capital flexibility and mind set (Kreos has similar structure and drivers as a traditional venture capital fund with a long-term perspective)
  • Large financing commitments with flexible draw downs of capital
  • Fixed monthly repayments over the life of the lease or loan based on the amount of capital that has been drawn down
  • Equity warrants / options

• Complementary financing to traditional venture capital (equity) financing
  • Significantly less dilution
  • Short and easy process
  • Does not require Board level control
  • Creates extra financial buffer for the company, leverages the equity and increases the return for entrepreneurs and venture capital investors
  • Can help achieve certain milestones to bring company to technology and customer proof-of-concept, revenues, profitability and/or an exit