In his recent appearance on CNBC Street Signs Asia with Tanvir Gill, Ankit Agrawal, Executive Director and Portfolio Manager of LC Venture Debt Fund, spoke on Lighthouse Canton’s latest India venture debt report and delved into the growing appeal of venture debt as a financing model for startups.
Read the full report: India Venture Debt Report 2024 | Silent Bloom
Large companies are increasingly turning to venture debt to address challenges that traditional bank loans cannot solve, particularly given some banks' reluctance to lend to early-stage companies facing regulatory uncertainties. Venture debt enables founders to minimize equity dilution, allowing them to maintain control over their businesses while accessing growth capital. Convertible debt and warrants serve as crucial mechanisms for mitigating lender risks and reducing upfront costs for startups. The venture capital funding slowdown has made venture debt an essential tool for growth financing, especially in India, where its adoption has grown significantly over the last decade. The Fintech and EV sectors particularly benefit from venture debt due to their high capital requirements and evolving regulatory environments.
Watch the full interaction below:
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