If you follow the start-up space, it is hard to miss the talk about the slowdown in the funding frenzy. Even the big guys like Tiger Global aren’t bringing their cheque book out in a hurry to support their portfolio companies in follow-up rounds if they aren’t scaling up to expectation.
While this will bring some sanity back to start-up valuations, for start-ups who have gone through Series A funding, not getting the much needed follow-on funding will likely threaten their existence. For start-ups that chose to throw financial discipline out of the window, consolidation and shuttering down will become the norm in the coming months. But for start-ups who did most things right and are probably a little ahead of the market, could venture debt emerge as an alternative to another round of equity infusion?
Venture debt is a relatively new