Venture debt, also known as venture lending, is a specialized form of financing designed to support startups and fast-growing companies. Unlike traditional loans, venture debt provides more flexibility, making it an ideal option for businesses in their growth phase.

Venture debt is typically extended to growth-stage companies that are backed by venture capital. It allows these companies to raise additional capital without diluting their equity. This is particularly beneficial for startups that want to maintain control over their business while still accessing the funds necessary for expansion.

By leveraging venture debt, businesses can extend their runway, manage cash flow more effectively, and continue to fuel their growth trajectories.