It Takes Money to Make Money: How to Use Venture Debt as a Tool for Growth

It takes money to make money. It takes capital to fuel a high growth company, so how do you get it? More importantly, how do you get access to this fuel without eroding shareholder equity?
The answer may surprise you: Venture debt, a loan designed specifically to finance high growth business.
“When you’re a high-growth company, it’s difficult to throttle the burn rate without losing momentum,” says Mark Usher, Executive Managing Director, CIBC Innovation Banking.
“Debt financing enhances liquidity, giving companies the working capital they need to help fund their growth plans and achieve critical business objectives.”
Venture debt is non-dilutive, which means it doesn’t require giving up equity. It’s also time-efficient, particularly when considering the months of pitching required to secure equity investment and the relative speed at which debt financing is approved. (Click here for full article, available in English only), Opens in a new window
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