As equity funding dries up, venture debt is becoming a hot favorite among startups and investors alike. In fact, since last year, there has been a steady shift towards this asset class. According to Venture Intelligence, India's venture debt funds raised $85 million in the fiscal year 2020-21, up from $62 million in the fiscal year 201920. In 2021, more than 100 companies, including Mensa Brands, Infra.market, Licious and Zetwerk, raised venture debt. Many startups also used venture debt to acquire companies and expand to new markets. For the uninitiated, any business has two basic avenues to raise capital, which are equity and debt. Earlier, debt was available through only banks, but today, venture debt is available to startups easily. It has also become hassle-free in terms of collaterals.
The shift is further evident in the pace at which many top venture debt firms in India have been closing their fundraising. According to news reports, Stride Ventures, which has companies such as SUGAR Cosmetics, and Homelane in its portfolio, is looking to close Fund II, with a corpus of INR 1,000 crore and with a greenshoe option of around INR 875 crore, anytime soon. Trifecta Capital, with portfolio companies 6FE 647510 such as BigBasket, Cars24 and ShareChat, Alteria Capital with Mensa brands, Infra. Market, and InnoVen Capital, with Udaan and Dailyhunt, have been raising and closing funds at a very high speed.
What has changed?
Esta historia es de la edición Startups July 2022 de Entrepreneur magazine.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición Startups July 2022 de Entrepreneur magazine.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
How To Ask Family For Money
Your friends-and-family fundraising round doesn't have to be scary and awkward. Here's advice from one of the world's leading investors.
Data Breach Drama: When Trust Turns Costly In A Digital Age
Amid data breaches surges, Indian businesses are prone to financial and reputational fallout. Can cyber insurance emerge as a safeguard?
THE TERRAIN TAMER
Spearheading a California-based, Series D SaaS company is no easy feat. It requires a blend of ownership, innovation, and the ability to handle stress. But Anand Jain, co-founder and chief product officer of Clever Tap, finds his calm by escaping to rough terrain whenever he gets the chance-be it India or Colombia.
THE INTELLIGENT READS
Hardika Shah founded Kinara Capital in 2011 with the mission to address the acute credit gap in the micro-small-medium-enterprises (MSME) sector in India, by providing fast and flexible business capital to small business entrepreneurs. Despite operating in highly competitive and tough market of collateral free loans, Kinara Capital has been steadily growing in Hardika's leadership. In conversation with Entrepreneur, Hardika shares insights on her favourite books.
THE CURSE OF GROWING TOO FAST
FAIRE is a platform for small businesses, but it grew big the wrong way-almost becoming a $12 billion wreck. Here's how it fixed the problem, and why you should think twice before skyrocketing.
There's No Perfect Answer
I worked the same job for 19 years. I hated it, but it paid the bills. Then, in 2017, I entertained an exciting but terrifying question: Could I be an entrepreneur? I wasn't sure, so I needed something that felt like a guarantee. I searched for signs that would feel like a big, clear \"yes!\"
Give Yourself the Gift of Time
Happy holidays! Emmy Award-winning tech expert Mario Armstrong has five recs to get more hours in the day.
How to Become a Main Street Millionaire
It started when I bought one little laundromat. Now I have a whole portfolio of small local businesses that bring in tens of millions in revenue a year. Here's why following my playbook could be your ticket to financial freedom-and saving America's local small businesses.
Want to Better Serve Your Clients? Become Them.
As a designer for brands, starting my own product company gave me a dose of humility-and it changed the way I relate to clients.
How to Succeed With Gen Z Workers
People often say that younger employees are different. But are they? We asked six business leaders what they've learned, and how their teams thrive.
