Venture debt is an alternative source of capital for startups who are facing cash constraints and have difficulty obtaining financing from banks. It can help venture capitalist ("VC") backed startups in their growth journey and create an optimal funding structure, whilst enhancing stakeholders’ value.
Although an established alternative financing source in the US, Europe, Israel and India, venture debt has recently gained traction in Southeast Asia as a mainstream financing option for high growth technology companies.
Since its emergence in Singapore in 2015, the market has seen a marked increase in venture debt activity in the region. Considered an apt support to boost the local startup ecosystem, the Singapore government has introduced key programmes aimed at providing local early stage and high growth small and medium-sized enterprises an additional financing option for business growth and expansion.
Helps founders and VC-backed startups minimise shareholder dilution at early stages of the company’s growth
Allows the extension of cash runway between fundraising rounds, helping companies achieve performance targets set by equity investors
Supports companies facing unexpected market turbulence (e.g. economic impact arising from COVID-19) and helps speed up growth initiatives
Amid COVID-19, venture debt has emerged as an important source of funding, propelling the startup ecosystem in Singapore and Southeast Asia. We see more companies turning to venture debt to quickly adapt to the new market conditions. With strong demand from startups and founders for venture debt, venture debt can help both sides thrive in the post pandemic world.
In this fast-changing venture capital landscape, our specialists are able to provide value creating insights and market access to help your company achieve faster growth. We will work with you to help incorporate venture debt in an optimal funding structure for your business through:
FinTech is changing the Financial Services industry from the outside in. The vision of PwC's FinTech Practice is to enable the future of financial services by offering a wide spectrum of services to diverse players within the FinTech ecosystem.
We can help you access the right investors that will provide you with the right resources to grow and expand in this fast-moving industry.
