Abstract : Venture debt is a customized financing method designed to address the distinct requirements of startups and early-stage enterprises. These enterprises frequently function in high-growth contexts yet lack the profitability or significant tangible assets necessary to obtain conventional financing. Venture debt addresses this gap by providing financing to enterprises that have already secured equity backing, usually from venture capital (VC) firms. In contrast to traditional financing, which predominantly depends on collateral or past financial performance, venture debt assesses a business's future potential, rendering it especially appropriate for creative and rapidly expanding companies.
