Venture Debt
A loan to a startup that has already raised equity, used to extend runway without dilution. Lenders take warrants and rank ahead of equity in a wind-down. A growing complement to Israeli venture rounds.
Venture debt is a loan extended to a startup that has already raised equity, used to extend runway without further dilution. Lenders typically take warrants and rank ahead of equity in a wind-down. It has grown as a complement to venture rounds across the Israeli ecosystem, especially when equity pricing is uncertain.
Why it matters. Venture debt is how companies buy time between rounds — or avoid a down round. Tracking it reveals which startups are managing dilution carefully and which are running short of equity options.
See also: Down Round · Institutional Capital