VC Debt Funds for Startups
When can your startup think of raising Venture Debt funds?
Suitability
- Already raised Series A round (typically between 20 to 30 crores or USD 4 to 5 Mn)
- Approx 15-18 months to go for Series B fundraise
- Unit economic positive with a net positive contribution margin
Use of funds
- Working Capital financing
- New product or vertical development
- Not for expensive hire in management or marketing burn
Benefits
- No dilution in equity or addition to cap table
- No valuation required
- Leaner Due Diligence
Amount: Typically between 2 to 6 crores
Cost: 14-15% p.a.
Important VC Debt Funds in India
- Trifecta Capital
- InnoVen Capital
- Alteria Capital
