Debt eats Equity? The Rise of Venture Debt

Video • Venture Capital & Start Ups from Roman Rericha, Adrian Zuschmann
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A new form of financing known as "venture debt" is increasingly spilling over from the U.S. to Europe. Although the idea is not new, it could offer founders greater flexibility in their choice of financing - find out more in our video.

But what exactly is venture debt? Broadly speaking, it is debt capital provided by a specialized venture debt fund. Companies pay the money back, similar to a loan from their bank, with interest and principal at regular intervals, starting from the beginning. It is particularly relevant for founders and investors because the cost of capital is lower than with traditional equity capital and they can save millions in the event of an exit.

Together with YPOG, we held an event for founders and investors to introduce this form of financing to the Austrian community – find out more in our video.

The team
Roman Rericha
Partner / Fund Formation, Venture Capital & Start Ups, Corporate Law & Transactions
Roman represents clients in complex cross-border M&A and private equity transactions. Austrian and international venture capital funds regularly turn to him for assisting with investments in Austria. His expert advice also guides start-ups through large-scale financing rounds.

University of Vienna, Faculty of Law (Mag. iur. 2005),
Faculty of Business, Economics and Statistics, (Mag. rer.soc.oec. 2007)
Adrian Zuschmann
Attorney at Law / Corporate Law & Transactions, Venture Capital & Start Ups, Fund Formation
Adrian advises and represents Austrian and international institutional and strategic investors, founders and (start-up) companies in the context of financing rounds, M&A, investments in portfolio companies and exit transactions.

A second focus is advising Austrian fund initiatives on the formation and structuring of funds as well as in connection with their ongoing operational matters.

Queen Mary University of London (MSc Law & Finance 2020)
University of Vienna, Faculty of Law (Magister iuris 2015)