Private credit glossary · Data updated Oct 23, 2026
What is venture debt?
Venture debt is term debt for venture-capital-backed companies that extends runway between equity rounds without additional dilution, underwritten against the investor syndicate and growth trajectory rather than current cash flow.
87
active Venture Debt funds in this site's database
$2M–$30M
median confirmed check size, from 21 source-confirmed ranges
How it works
- Sized as a fraction of the last equity round or forward revenue, not EBITDA.
- Usually includes warrants (small equity coverage) on top of interest.
- Covenants are light; the lender's real collateral is the next round.
When borrowers use it
- Extending runway 6–12 months to hit a better valuation at the next round.
- Funding a specific milestone (launch, regulatory step, expansion) between rounds.
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