Venture Debt
A loan provided to venture-backed startups, used alongside equity to extend runway with less dilution.
Venture debt is borrowing (often with warrants attached) typically available to companies that have raised equity. It extends runway, funds specific needs or bridges to the next round without selling as much equity. It must be repaid with interest, so it suits companies with predictable revenue.
Examples
A startup adds £500k venture debt on top of its Series A. — A company uses venture debt to fund growth between rounds.
How it relates to The Startup Foundry
Understanding the full funding toolkit helps founders plan. The Foundry focuses on equity at pre-seed, where its fund invests up to £250k.