top of page

Spinta Bytes Blog

Venture Debt Leverage Multiples

Mid / Later Stage Venture Companies

 

Leverage multiples for middle market companies are well understood, but how much debt is available to a later stage venture business that is not yet profitable? Based on data from ~25 recent venture debt financings, a clear picture emerges on the drivers of 'maximum debt' as a function of revenue run rate.



Yes...scale, investor reputation, growth, latest equity round all matter. But by far the most important factors are:

  • Stickiness of customer base (ie revenue retention)

  • Gross profit margin

Of course comments are always welcome.






Recent Posts

See All

Venture Debt Terms - Mid 2024

Well this Summer is officially far more boring than last – no Barbie, no Oppenheimer, no bank meltdowns, no Fed rate moves, and overall a...

Venture Debt Terms - Mid 2023

While Barbie vs Oppenheimer debates rage this week, we wanted to offer more interesting discussion fodder – venture debt terms. With the...

コメント


bottom of page