The publicity today in the tech community tends to focus on crowd funding, incubators, angels, venture capital, and the like as the principal sources of financing.
However, for startups on a growth path that are beyond their first institutional venture investment, debt financing in the form of venture lending and bank loans/lines of credit has become an attractive source of capital that is less dilutive than equity financing and relatively easy to access.
In this Wharton Entrepreneurs Workshop, Jim Mitchell, a co-founder of Meier Mitchell & Company, and Andy Hirsch, a senior partner in the Finance Group at Wilson Sonsini, cover:
- debt financing trends in the tech community
- the pros and cons of both venture lending and bank financing
- the circumstances where an executive should actively seek out debt financing in lieu of equity
- basic terms that characterize both venture debt and bank financing
Watch the workshop in its entirety below:
Posted: April 29, 2014
