How venture debt is becoming the go-to option for many startups
With equity funding becoming dearer, venture debt is becoming the go-to option.
Between January and May this year, venture debt funds disbursed $56 million across 21 deals.
Businesses in spheres such as ed-tech, gaming, B-to-B marketplaces, intra-city logistics, health-tech, logistics, dairy-tech and agri-tech are finding it relatively easy to raise debt funding.
"Venture debt, as an asset class, is relatively younger than venture equity... That apart, as startups grow older, their capacity to absorb debt also goes up.
"We were lucky to raise some debt capital in December... By then, there were clear signs of a global slowdown.
Disclaimer: This story is auto-aggregated & summarized by a computer program and has not been created by StartupAround.
Other major reasons for startup failures (at least 10% or above) are from pricing/cost issues, user-unfriendly products, poor marketing, and product mistiming.
Search Startup Around
Boost Your Discovery with Us
Advertise with us to boost your article, content pience, product, event, conference discovery to our readers which includes founders, startup enablers, investors and every key stakeholders from global startup eco-system.