Is Venture Debt a Part of Your Financial Strategy?

In a recent post for the OpenView Blog site, Venture Partner Firas Raouf writes that for some companies, there are lots of financial considerations out there that make more sense than venture capital.

And if that sounds like an odd message to hear from a venture capitalist, the strangeness isn’t lost on Firas either. But he notes that it’s important for company leaders to understand ALL the different financing options — including venture debt — before choosing the best strategy for their businesses.

“The key is to study the various forms of financing available to you and understand when, how, or if you should use each one,” he explains.

In regards to venture debt, Firas writes that, when used properly, it can be a valuable way to “reduce dilution, extend a business’s runway, or accelerate its growth — all with limited cost to the company itself.”

The question is, when does venture debt make sense? Is it REALLY a good idea? Check out the full post for more details.