How Venture Debt Is Reshaping Startup Finance

Lucas and Luna dive into the mechanics of venture debt — a $60 billion asset class that's quietly become a critical financing tool for growth-stage startups. They break down how venture debt differs from equity, why institutional LPs are allocating more capital to debt funds, and what the rise of players like Silicon Valley Bank, Hercules Capital, and TriplePoint Capital means for startup balance sheets. Specific numbers: the average venture debt fund has returned 8–12% net IRR historically, versus VC's 15–20% but with significantly lower volatility and a 2–3 year shorter duration. Plus, the hosts explore the hidden risk: when the equity cushion shrinks, debt can accelerate a startup's collapse. #VentureDebt #StartupFinance #LPInvesting #VentureCapital #GrowthEquity #SiliconValleyBank #HerculesCapital #TriplePointCapital #RiskManagement #PortfolioConstruction #AlternativeAssets #InstitutionalInvesting #Finance #Business #FexingoBusiness #BusinessPodcast #TheVentureCapitalInvestorPodcast #LucasAndLuna Keep every episode free: buymeacoffee.com/fexingo