Debt Market Update – Q4 2024

Welcome to our Q4 and full year 2024 review of the venture debt market. The numbers are in and by “most” accounts, venture debt had a booming fourth quarter in 2024 and a record full year in terms of deal volume. While some of these record numbers were skewed higher by a handful of mega deals, there is no doubt that the venture debt market has stepped up in a big way amidst an admittedly difficult equity funding environment.

However, we continue to follow a trend that first began to emerge in 2023 and appears to have accelerated dramatically in 2024. That is, we continue to see lenders pouring significant capital into later stage companies. Whereas the market has historically been for the benefit of earlier stage, VC backed companies that employ a capital structure strategy of equity and debt for growth, for the first time in 2023, and even more so in 2024, there were more deals completed with later stage growth companies. We’re not anticipating any major economic or market shifts early in 2025 that might alter this trend, but we’ll continue to closely monitor this relatively recent development in the market.

To gain more insights into the venture debt market in Q4 2024, download the full report and read Capital Advisors Group’s Quarterly Debt Market Update.