Insights

European founders, often operating with more constrained funding options and fewer mega-rounds, have adapted by being more strategic. They understand that equity is expensive—and not always the right tool for every job. Venture debt is used proactively: to extend runway, bridge to milestones, or fund large capital expenditures (like equipment or infrastructure) that equity investors may hesitate to back. In contrast, many U.S. startups still regard venture debt as a signal of weakness—a stopgap measure when equity financing falls through. That perception, while slowly evolving, continues to limit how founders think about capital strategy. Even as equity rounds take longer to close and valuations compress, some U.S. founders avoid debt entirely, leaving valuable financing options on the table.

Founders looking to raise in this market need to understand what investors are prioritizing—and how they can build financing strategies that reflect this new reality. One of the most overlooked tools in that toolkit? Venture debt.

According to the recent PitchBook-NVCA Venture Monitor, the median time between venture rounds is increasing, meaning startups need to be more strategic about how they manage capital. For many founders, timing has never been more critical. With IPO markets still...

In the startup world, “debt” can sound like a four-letter word. Founders are often encouraged to chase equity rounds and avoid debt at all costs. But that thinking overlooks one of the most strategic, founder-friendly tools available: non-dilutive capital in the form...

U.S. venture capital firms invested over $180 billion into high-potential startups in 2024, marking a 27% increase from the previous year. A significant portion of this investment was directed toward sectors such as artificial intelligence (AI), clean energy, and life...

Venture debt can be a powerful tool for startups, but myths and misconceptions often hold founders back from considering it. In this article we examine and dispel some of the most common and persistent myths.

Startup founders are often wary of taking on debt. It can feel like too risky a financial burden, coming as it does with fixed repayment obligations, regardless of business performance. Many founders fear that taking on debt could strain cash flow, limiting their...

For capital-intensive startups in sectors like space tech, biotech and energy, venture debt is an essential part of the financing mix.

New analysis from PitchBook reinforces what so many founders already know: Cash is tight. With the notable exception of AI startups, founders in almost every sector are finding it harder and harder to secure venture capital (VC) funding. The tightening of...