Venture debt financing when equity is not the right call
Equity is not the only money a growing company can take. Venture debt puts a loan on the books instead of a shareholder, useful when the founder runs the full stack and the company has cash flow to service repayments.
What debt does instead
Venture debt is a loan, not a share. The company repays from cash flow and no shareholder joins the cap table. It suits a founder who runs the full operating stack and needs capital, not a partner, and a company with revenue steady enough to service repayments. The trade is fixed repayments in place of dilution. No board seat goes with it.
What stands behind it
A lender lends against what it can value. A catalogue held in its own company gives a lender one clean balance sheet, and the structure lets the catalogue be borrowed against without disturbing the operating business. We help a client choose between debt and equity on what the cap table can absorb and what cash flow can carry, not on what is fashionable.