Founder Friday: Debt Financing vs. Equity Financing
On August 17, PitchBook published the article “Venture lending flourishes amid VC funding pullback.” In that piece, PitchBook discusses the increased interest by startups in venture debt to solve growing capital needs instead of doing another equity round where they would have to sell shares at lower valuations. They also highlight how players like Blackstone are entering the venture debt arena.
We thought the timing was perfect for sharing some resources to help better understand the key differences between debt financing and equity financing…
- Silicon Valley Bank: Understanding venture debt financing
- Investopedia: Equity Financing vs. Debt Financing: What’s the Difference?
- AbstractOps: Financing Alternatives: Venture Debt vs. Venture Capital
- Fuse Capital: Four-Part Venture Debt Guide for Tech Businesses
- CB Insights: Venture Debt Vs. Venture Capital In One Graphic
Debt financing is an excellent option for profitable startups that need a cash infusion looking for an alternative to diluting equity. And that Fuse Capital guide is the most comprehensive overview we’ve seen.