{"version":1,"type":"rich","provider_name":"Libsyn","provider_url":"https:\/\/www.libsyn.com","height":90,"width":600,"title":"The Case of the Venture Debt Dilemma","description":" All entrepreneurs should understand what venture debt is so they can make an informed decision to take it or not. Heidi poses a series of questions and scenarios to help founders know whether it\u2019s a good option for their company. And if it is, how to set it up and use it.  More Information: https:\/\/www.threshold.vc\/podcast\/the-case-of-the-venture-debt-dilemma Further Reading: As I mentioned in the episode, General Catalyst has an interesting offering around a financing model for growth equity that is a hybrid of debt and equity: https:\/\/www.generalcatalyst.com\/stories\/the-unbundling-of-growth-equity Also, as mentioned, the next version of the SAFE has arrived in the form of a SAFERloan agreement, which allows for some repayment instead of conversion: https:\/\/www.liquiditygroup.com\/resource-funding\/what-is-the-safer-agreement Here\u2019s a solid primer on debt covenants:https:\/\/www.lightercapital.com\/blog\/what-are-debt-covenants-on-a-loan#:~:text=A%20debt%20covenant%20lays%20out,more%20specific%20and%20complex%20requirements Finally, one thing I didn\u2019t cover in the episode but is relevant to the decision-making about debt is that the lender may ask you to move all your banking business to their bank. And that can prove disastrous in situations like what happened to SVB. Here\u2019s a great piece on that danger: https:\/\/www.linkedin.com\/pulse\/wake-svbs-collapse-some-tech-founders-turn-against-venture-tanya-dua ","author_name":"The Startup Solution","author_url":"http:\/\/sites.libsyn.com\/477477\/site","html":"