The Venture Debt or risk debt can be used so that startup of recent creation are able to access capital, in an environment such as the current one, when many of the large mutual funds risk capital (venture capital) have warned that financing will be reduced in the short and medium term.

The Venture Debt is an investment model whereby startup they obtain capital in exchange for a portion of their shares, which can be recovered by the entrepreneurs after payment of the debt.

Unlike Venture Capital, in which the investors or funds that finance a startup become decision makers within the company itself, in the Venture Debtthe investor does not become part of the company.

Source: California18