Venture Debt Financing Options: Growth Capital

May be appropriate for a company looking to extend its cash runway and leverage its existing equity with minimal dilution. The company may not have an abundance of hard assets to use as collateral, but wants additional operating capital for growth. Typical structure would include an all asset lien (with a negative pledge on intellectual property) amortized over a 3- to 4-year term. This type of financing would typically be more expensive than equipment or accounts receivable financing, but may be a good option for a firm that wants to “buy time” in order to reach certain milestones or inflection points. Liquidity of borrower and venture capital investor strength are main factors in determining eligibility.