Wharton Entrepreneurs Workshop #37 — “Venture Debt and Non-Venture Debt: Overlooked Sources of Capital in the Startup Ecosystem” with James Mitchell and Andrew Hirsch

The publicity today in the tech community tends to focus on crowd funding, incubators, angels, venture capital, and the like as the principal sources of financing.

However, for startups on a growth path that are beyond their first institutional venture investment, debt financing in the form of venture lending and bank loans/lines of credit has become an attractive source of capital that is less dilutive than equity financing and relatively easy to access.

In this Wharton Entrepreneurs Workshop, Jim Mitchell, a co-founder of Meier Mitchell & Company, and Andy Hirsch, a senior partner in the Finance Group at Wilson Sonsini, cover:

  • debt financing trends in the tech community
  • the pros and cons of both venture lending and bank financing
  • the circumstances where an executive should actively seek out debt financing in lieu of equity
  • basic terms that characterize both venture debt and bank financing

Watch the workshop in its entirety below:

Posted: April 29, 2014

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