For startups looking to raise capital, the persisting trend of consolidation and a cautious approach by large investors have come as a dampener. However, not all is lost as venture debt is emerging as an alternative source of funding.
Venture debt is similar to debt raised from banks with monthly instalments and higher interest rates but with a few caveats. With this, startups can raise a loan ranging from Rs 2 crore to Rs 30 crore for a stipulated period with interest rates ranging from 15% to 18%. However, the most significant aspect is that by raising venture debt, startup founders do not have to dilute equity.
This financial instrument is new in the market and with attractive terms, startups are likely to be lured to avail themselves of venture debt.
TechCircle Startup â€“ Delhi Edition is hosting experts from Trifecta Capital and InnoVen Capital, two venture debt firms, to conduct a session on how startups can look forward to tapping venture debt.
Apart from this, the event will feature discussions on:
- Bitter and better: New rules for startups
- From an investor's lens: Is Series A funding no more the focus?
- Angels in the driving seat: How far will this go?
- Business valuations: Key to ensuring investments and long-term sustainability
- Micro VCs, alumni networks and much more.
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