Private Credit Meets the Valley, with John Markell and Matt Schwartz

350+ lenders now finance cash-flow negative businesses. Five years ago, maybe a handful would.This shift is creating new opportunities - and new risks - that most founders and fund managers don't fully understand.John Markell of Armentum Partners and Matt Schwartz, Head of U.S. Finance at DLA Piper, join me to unpack growth credit: the segment of private credit quietly reshaping how technology companies scale.We cover:What growth credit actually is - and why it's different from the private credit you read about in the papersThe gap between bank capital (under 10% risk) and equity risk (north of 20%) - and who's filling itHow SVB's collapse changed underwriting, covenant packages, and deal sizesWhy enterprise software lending is "way, way, way saturated" - and where the white space isWhat founders get wrong when pitching lenders vs. equity investorsThe three things every founder should know before taking on debtWhy some funds net 19% to LPs while others struggle to clear 12%Whether you're a founder considering debt or a fund manager looking for origination opportunities, this conversation will change how you think about the gap between bank capital and equity risk.Follow Modern Capital on your podcast player of choice.