What are the best ways of raising venture debt?

​‍A venture debt raise is a result of having strong fundamentals. The first step is to have a clear growth story — lenders would like to see predictable revenue, a stable customer base, and a scalable business model. The second step is to work with a venture debt fund or a bank that supports startups, rather than a traditional lender that will require you to provide heavy collateral. Third, you need to align a venture debt with an equity round; thus, it will reduce the risk for lenders and allow you to negotiate better terms.

Another thing that is wise is to organize your debt repayment in such a way that cash flow remains flexible during periods of growth. It is a great advantage to plan in terms of legal and tax issues — good compliance increases the confidence of lenders.

That is where Accelero Corporation becomes very important. The company assists founders in structuring their finances, staying compliant, and planning the implications if the business crosses borders, especially for startups with global exposure. With expert expatriate tax services, founders can do capital budgeting efficiently while at the same time being free of tax surprises. Venture debt is a great tool when used properly, i.e., to lengthen the runway and not to replace the equity that has been planned wisely. ​‍​‌‍​‍‌