EHG 101 series: Venture debt — extending your startup’s runway

Securing and having access to financing is a key concern for emerging and high growth companies as they scale, but leveraging the right financing arrangement for your business is also of paramount importance. Venture debt can be a viable option for your business as a way to infuse money into the company without adding more shareholdings to the mix.

It’s also important to understand that venture debt should not necessarily be viewed as a substitute to equity, but instead as a complement to the latter. This presentation by Marta Rochkin, an associate in Osler’s Financial Services Group and Win Bear, Managing Director of Silicon Valley Bank, explains the importance of striking the right balance between venture debt and equity. Available in both webinar and PowerPoint format, this presentation also explains the types of debt and financing options available for emerging and high growth companies and the pros and cons to each. The goal is also to help your business navigate the following issues:

• debt vs. equity including the differences between each type
• primary uses of debt
• “traditional lender” and “innovation industry leader” mentalities
• venture debt and growth capital (debt) providers
• key considerations in choosing a debt partner
• venture debt parameters
• working capital lines of credit and recurring revenue lines of credit
• SRED financing and alternative financing