Clifford Chance

Venture Debt: A lifeline for growth companies

21 October 2022

When raising equity becomes difficult or more expensive for growth companies, venture debt can come to the rescue. In inflationary times and economic distress, it might be the lifeline a growth company needs. Growth companies are increasingly contemplating the use of venture debt as a supplementary source of non-dilutive financing.

Given the uncertain economic outlook, venture debt can also be considered as a buffer against running out of cash, extending the runway to the next milestone. We expect the current economic climate to act as an accelerator for an exponential rise in popularity.

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