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.