Venture Debt

Definitions

1. Debt financing provided to venture-backed companies, usually to extend runway without a full equity round. Venture debt preserves ownership more than equity but adds repayment obligations and downside risk.

   In plain English: A loan for venture-backed startups used to extend runway.

   Example: "They used venture debt to buy time between rounds instead of taking a flat raise."

Related Terms

• Series A / B / C
• Term Sheet
• Convertible Note
• Extension Round
• Bridge Loan
• Bridge Round
• Cash Runway
• Seed Extension