The Reorg Primary View: Venture Debt Firms Predict Growing Demand as Equity Turmoil Continues

While venture debt deal volumes declined through the first nine months of 2022, a recovery could come toward the end of the year as more startups turn to venture debt providers to support their growth as the volatility in equity markets continues, investors interviewed by Reorg said.

“We afford these [startups] less [equity] dilution and the chance to avoid a down round.”

Jeff Bede, Managing Director and Group Head of ORIX Corporation USA’s Growth Capital Business