BarbriSFCourseDetails
  1. keyboard_arrow_leftBack

Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Banking and Finance

Date & Time
  • event Date

    Tuesday, March 19, 2024

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

This CLE webinar will explore the current state of the venture debt market and how businesses can tap into venture debt for growth and revenue while minimizing equity dilution.

Faculty

Jennifer Post
Partner, Co-Chair Emerging Companies Group
Thompson Coburn LLP.

Ms. Post serves as primary outside counsel to entrepreneurs, venture capital funds and operating companies with an emphasis on transactional and finance matters. Her practice encompasses general corporate and securities law and commercial finance transactions. Ms. Post represents investors, lenders and emerging companies in venture capital, private equity, lending, M&A and fund formation work. She has a unique niche representing venture debt funds and other direct lenders in secured transactions involving technology, fintech, life sciences, SaaS and consumer brands in the private credit markets.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio
Matt Schwartz
Partner, U.S. Finance Practice Group Leader
DLA Piper

Mr. Schwartz has spent more than two decades representing banks and private credit funds in structuring and negotiating a wide range of debt, equity and hybrid debt/equity investments.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio

Description

The difficult fundraising environment for venture-backed companies has made venture debt comparatively more attractive to many founders who seek creative forms of financing that minimize ownership dilution.

This type of debt financing is used to fund day-to-day costs and expenses, finance working capital and capital expenditures, create extended runway until the next equity round, and provide a cushion should there be a cash crunch, unexpected expenses, or rapid growth. Venture debt is often used to complement venture capital and is available to startups and growth companies that do not have positive cash flows or significant tangible assets to provide as collateral.

Listen as our authoritative panel compares venture debt versus venture capital as a creative form of financing and provides tips for advising clients on how to use venture debt wisely to fund growth while also mitigating legal and business risks.

Outline

  1. Venture debt vs. venture capital and current state of the market
  2. Factors to consider when choosing between venture capital and venture debt
  3. Strategies for using venture debt
  4. Advantages and disadvantages of venture debt
  5. Types of venture debt facilities
    • Term loan/growth capital
    • Revolving lines of credit
    • Equipment financing
    • Revenue-based financing
  6. Distinctions between traditional banks and direct lenders in venture lending
    • Substantive deal terms
    • Relational fit
    • Pricing
  7. Recent OCC guidance on venture lending
  8. Key takeaways

Benefits

The panel will discuss these and other key issues:

  • What are the latest trends and opportunities in venture debt financing?
  • Factors to consider when choosing between venture capital and venture debt
  • When is venture debt a good strategy for businesses and how can it be used wisely to fund growth?
  • What are the key advantages and disadvantages of venture debt?
  • What are the key distinctions between traditional banks and direct lenders in venture lending?