2016 Venture Debt Market Outlook

In times of economic uncertainty, debt financing can be a valuable tool for venture capital-backed companies that need to extend cash runways between equity rounds—and now is one of those times. Since last December, emerging-growth companies have been sailing against headwinds they haven’t faced in quite a while. Growth of total U.S. venture capital investing, which had ramped up nicely after the 2008 crisis, tailed off a bit at the end of last year. Meanwhile, stock market volatility and a dramatic slowdown in new IPO listings continued through the first quarter. Emerging companies are facing new uncertainty about their ability to raise equity capital in 2016. The good news, however, is that the market for venture debt financing is still robust, with plenty of competition among lenders.

Our new report on the “2016 Venture Debt Market Outlook” provides a 30,000-foot view of this ever-evolving marketplace. It explores current debt market dynamics, reviews the wide range of effective, non-dilutive financing structures that have emerged to help companies manage lengthy product cycles and time-consuming regulatory processes, and concludes with practical advice on how to successfully navigate the debt markets this year. Capital Advisors Group debt finance consultants have more than forty years of combined experience sourcing lenders. Over the years we have developed more than 1,000 term sheets negotiating deals for borrowers. So if you are wondering whether it’s time to consider prudent, non-dilutive debt to extend your cash runway in 2016, take a look at our report and be sure to give me a call.

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Best Regards,

Ben Campbell
President & CEO