Entrepreneurs often get confused as to when to raise venture capital versus venture debt. Their confusion is understandable as the terms of venture debt and venture capital converge at the margin and misconceptions abound.
Equity is permanent and debt must be repaid, right?
The primary difference between venture debt and venture capital is that debt must be repaid. VCs are also very interested in getting their capital back plus a profit. There are some current market-dynamics which make the distinction between the repayment of venture debt and the liquidity needs of venture capital blur.
To read the full, original article click on this link: Is venture debt the new venture capital? - Mass High Tech Business News
