Tuesday, May 11, 2021

When can a Startup Raise Venture Debt Funds?

- Already raised Series A round (typically between 20 to 30 crores or USD 4 to 5 Mn)
- Approx 15-18 months to go for Series B fundraise
- Unit economic positive with a net positive contribution margin

Use of funds
- Working Capital financing
- New product or vertical development
- Not for expensive hire in management or marketing burn

- No dilution in equity or addition to cap table
- No valuation required
- Leaner Due Diligence

Amount: Typically between 2 to 6 crores

Cost: 14-15% p.a.

Important VC Debt Funds in India
- Trifecta Capital
- InnoVen Capital
- Alteria Capital