Dilution

Venture Debt for Startups: A Founder's Decision Framework for Timing, Terms, and Traps

Venture debt offers startups capital to extend runway or fund growth, but it's only suitable for post-Series A companies with proven product-market fit and institutional backing. Founders must carefully evaluate terms like warrants, covenants, and fees to avoid common pitfalls and ensure it amplifies a working growth engine, not a struggling one.