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Venture Debt vs. Venture Capital Financing: Non-Dilutive Loan Strategies for VC-Backed and Emerging Growth Companies

Recording of a 90-minute premium CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Tuesday, March 19, 2024

Recorded event now available

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This CLE webinar will explore the current state of the venture debt market and how businesses can tap into venture debt for growth and revenue while minimizing equity dilution.


The difficult fundraising environment for venture-backed companies has made venture debt comparatively more attractive to many founders who seek creative forms of financing that minimize ownership dilution.

This type of debt financing is used to fund day-to-day costs and expenses, finance working capital and capital expenditures, create extended runway until the next equity round, and provide a cushion should there be a cash crunch, unexpected expenses, or rapid growth. Venture debt is often used to complement venture capital and is available to startups and growth companies that do not have positive cash flows or significant tangible assets to provide as collateral.

Listen as our authoritative panel compares venture debt versus venture capital as a creative form of financing and provides tips for advising clients on how to use venture debt wisely to fund growth while also mitigating legal and business risks.



  1. Venture debt vs. venture capital and current state of the market
  2. Factors to consider when choosing between venture capital and venture debt
  3. Strategies for using venture debt
  4. Advantages and disadvantages of venture debt
  5. Types of venture debt facilities
    1. Term loan/growth capital
    2. Revolving lines of credit
    3. Equipment financing
    4. Revenue-based financing
  6. Distinctions between traditional banks and direct lenders in venture lending
    1. Substantive deal terms
    2. Relational fit
    3. Pricing
  7. Recent OCC guidance on venture lending
  8. Key takeaways


The panel will discuss these and other key issues:

  • What are the latest trends and opportunities in venture debt financing?
  • Factors to consider when choosing between venture capital and venture debt
  • When is venture debt a good strategy for businesses and how can it be used wisely to fund growth?
  • What are the key advantages and disadvantages of venture debt?
  • What are the key distinctions between traditional banks and direct lenders in venture lending?


Post, Jennifer
Jennifer Post

Partner, Co-Chair Emerging Companies Group
Thompson Coburn

Ms. Post serves as primary outside counsel to entrepreneurs, venture capital funds and operating companies with an...  |  Read More

Schwartz, Matt
Matt Schwartz

Partner, U.S. Finance Practice Group Leader
DLA Piper

Mr. Schwartz has spent more than two decades representing banks and private credit funds in structuring and negotiating...  |  Read More

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