WHY VENTURE DEBT IS GAINING POPULARITY
Entrepreneur magazine|Startups July 2022
The long funding winter is pushing startups to this new asset class
- S Shanthi
WHY VENTURE DEBT IS GAINING POPULARITY

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?

この蚘事は Entrepreneur magazine の Startups July 2022 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

この蚘事は Entrepreneur magazine の Startups July 2022 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

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