Glossary

Venture Debt

Venture debt is a loan to a venture-backed company, usually alongside equity, with interest, fees, and warrants.

Venture debt is a loan to a venture-backed company, usually alongside equity, with interest, fees, and warrants. It extends runway when the company already has enough cash to operate. Drawn to fill a gap, it adds a repayment schedule the business has to meet.

Related note

Venture debt: the trade-off most founders misread

Venture debt complements equity when the company already has runway. Drawn to fill a gap, it adds repayment pressure.

Related terms

Runway

Runway is how many months a company can operate before it runs out of cash, at the current rate of spending.

Fractional CFO

A fractional CFO is a senior finance executive who provides part-time or project-based CFO services to a company without joining full-time.

Related practice

Outsourced CFO

Senior finance leadership without a full-time hire.

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