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Meet Venture Capital’s Baby Cousin, Venture Debt

A Bloomberg "Quick Take" on one slice of the private credit asset class that is on pace for especially rapid growth as startups seek to stay private for longer and VC firms see record levels of activity: venture debt, also known as venture lending.

4. How does it work? Venture lenders step in after VC firms have already snapped up equity stakes -- usually after two or three rounds of equity funding. Typically, lenders provide debt to companies when they’re past their very earliest stages, like after they’ve developed a product and their technology has been proven to work.

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lending