Debt Market Update – Q3 2024
As we review the numbers for the venture debt market in Q3 2024, we see a bit of a mixed bag of data. On a positive note, the healthcare market reached heights in deal volume (capital deployed) that we haven’t seen in more than three years.
However, the total deal count to reach these numbers was only 64% of the deal count it took to achieve the same volume in 2021. This data led us to review the number of deals done by company stage which turned out to be a bit of a revelation. Last year, for the first time, deal count for later stage companies eclipsed the deal count for early-stage companies – those companies that have historically been the sweet spot for venture debt. That trend has continued and accelerated in 2024, with Q3 of this year demonstrating the most pronounced shift to later stage deal flow in a decade.
As equity markets have stagnated over the past two years, it appears venture lenders have moved upstream to later stage companies in a move to protect portfolios. We expect this trend to continue through Q4 of this year.
To gain more insights into the venture debt market in Q3 2024, download the full report and read Capital Advisors Group’s Quarterly Debt Market Update
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