The Decline of Venture Debt at the Early Stage
Tom Tunguz
JULY 25, 2021
A few years ago, when a startup raised a Series A or Series B, founders would bolster the round with venture debt: a term loan and/or a revolving credit line. However, equity dollars are replacing those debt dollars in the last 18 months in the early stage. Meanwhile, venture debt dollars have migrated to later stages. Early stage debt origination and round counts peaked in 2019, while later stage debt has increased quite nearly every year.
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