Founders, executive teams and investors are looking further afield at additional capital sources including venture debt, R&D loans and revenue-based financing.
The days of easily securing large equity rounds are behind us, at least for now.
Venture debt is essentially a loan provided to venture-backed or venture-backable companies.
It’s a solution that can work alongside equity funding and is particularly valuable for founders who are sensitive to dilution.
Mighty Partners provides flexible venture debt funding that typically equates to around 23% of the equity funds committed.
An unfortunate reality, however, is that equity is essential in those early stages.
This is where venture debt can deliver serious strategic value.
Don’t jump at the first funding option that appears.
The real winners are those who still own their business and have been able to manage growing their business with minimal dilution.
For early-stage startups, equity might be the key that unlocks your initial success.