While each partner in our network of investors has its own mandate, venture debt is typically most accessible to companies with €3m+ in annual net revenues. That said, earlier-stage companies may also be eligible depending on growth trajectory, revenue quality, and overall financing setup. We regularly advise founders slightly below this threshold on whether debt could already be an option or how to get there.
Your partner
for Debt.
Secure debt financing now
Debt is a useful alternative for accelerating the growth of your venture without giving up equity. With our expertise and network, we support you with raising debt.
Debt is a valuable tool for startups looking to grow quickly without diluting equity.
David Spreng
CEO - Runway Growth Capital
Debt is a smart way to fund a startup’s growth while minimizing dilution.
Jeff Harbach
CEO - Kauffman Fellows
Debt is a great way to leverage your equity and extend your runway.
Naval Ravikant
CEO - AngelList
+
0
Satisfied Clients
Ranging from stealth start-ups to decacorns
EUR +
0
m
Advised Funding
In grants and debt
+
0
Users
On FundedOS
How does the debt financing process with FUNDED look like?
1. Screening of ventures
1. Screening of ventures
We screen for financials, business model, the market environment, team, etc., to assess the success chances of the debt raise
3. Signing of the mandate
3. Signing of the mandate
If the chances of success are favorable, we conclude a mandate and start the fundraising process
5. Managing of the communication
5. Managing of the communication
We lead the dialogue with the investors, clarify open questions, conduct negotiations, and advise on the evaluation of offers
2. Market screening
2. Market screening
We approach specifically selected investors from our network to gauge their general interest
4. Preparation of deal documents
4. Preparation of deal documents
We prepare deal-relevant information in customized materials for investors in the data room
6. Flow of funds
6. Flow of funds
We ensure that the funds and necessary documentation are provided in a timely manner
Our pricing.
Success-based Service
We operate on a success-based model and only charge a small retainer in the event, that the funding is not realised.
-
Maximisation of financing sums
-
Maximisation of closing probability
-
Minimisation of your time investment
Other Enquiries?
We cover a range of possible services relating to venture debt and financing
Curious? Let’s Schedule A Call.
Financing options for ventures
Blended
With capital costs of 3-6%, blended financing is the most affordable option. Blended loans are offered by traditional commercial banks with public participation. The prerequisite for a partnership with the bank is a revenue of 300% of the loan amount. The financing must be earmarked for a specific purpose. Blended tickets range from €0.5-120 million. While the capital costs are relatively low, there is often more bureaucracy and less flexibility.
Banks
With capital costs of 5-8%, bank financing is somewhat more expensive. It is offered by traditional commercial banks. The prerequisite is a revenue of 300% of the loan. VC backing is often helpful in obtaining financing. The company should be approximately 3 years old. The tickets are up to €100 million. With low capital costs and the associated long-term partnership, bank financing offers advantages, but banks tend to be risk-averse and strictly regulated.
Venture Debt
With capital costs of 8-12%, venture debt is more expensive and is offered by specialized funds that supplement equity rounds. The prerequisite is revenue amounting to 300% of the loan and VC backing. Tickets start at €3 million and go up to €100 million. The advantages of debt are fast payout and flexibility, while the high cost of capital is a disadvantage of this type of financing.
Specialty Finance
With capital costs of 10-20%, specialty finance is the most expensive financing option for ventures and is offered by funds with earmarked financing. Requirements include revenue amounting to 300% of the loan and earmarked funds. Ticket sizes range from €0.25-20 million. Advantages include fast payout and flexibility, while disadvantages include very high capital costs and restricted use.
FAQ
What revenue do I need to qualify for venture debt?
Do I need to have raised equity before taking on venture debt?
Yes, venture debt usually requires VC backing. Institutional investors in the cap table give lenders confidence in the leadership team, signal access to follow-on capital, and provide reassurance around repayment ability.
What ticket sizes are possible with venture debt?
Venture debt financings through FUNDED typically start at around 3 million euros, with significantly larger volumes realistic for more established or fast-growing companies. Through our network of financing partners, we structure facilities that match your capital needs, growth strategy, and existing capital structure.
What business models do you finance through venture debt?
Venture debt providers in our network favor asset-light B2B business models with a high share of recurring revenue, such as SaaS. Capital-intensive or B2C models can also be financeable, depending on unit economics, margins, customer retention, and overall risk profile. FUNDED helps position your business model accordingly.
Which industries can access venture debt through FUNDED?
Attaining venture debt together with FUNDED is possible across all industries. Lenders show particularly strong interest in technology-driven companies, for example in software, digital infrastructure, or tech-enabled services. If technology is a core value driver of your business model, chances on the credit market are especially good.
Which regions does FUNDED support for venture debt?
FUNDED mainly advises companies headquartered in Germany, but regularly works with clients across other European markets too. Through our network of lenders, we also support cross-border financings and help founders navigate local and international debt markets.
How are venture debt facilities structured, and what terms are typical?
Venture debt can be structured flexibly depending on the company and lender, ranging from straightforward term loans with fixed interest periods to more complex facilities such as revolving or warehouse structures, sometimes with equity kickers. Pricing and interest rates vary with the company's risk profile and the lender's risk appetite. FUNDED helps find the structure that fits your growth plans.
Where are your lenders located?
Most of FUNDED's venture debt clients are based in the DACH region, but our lender network is internationally oriented and includes financiers from the US, Israel, the UK, and Spain. This gives access to a range of perspectives, structures, and risk appetites.
How does venture debt compare in cost to other financing options?
Venture debt typically costs 8 to 12 percent in capital costs, more expensive than blended financing at 3 to 6 percent or classic bank loans at 5 to 8 percent, but cheaper than specialty finance at 10 to 20 percent. In exchange, venture debt is faster to access and more flexible to structure, with tickets ranging from 3 to 100 million euros.
What does the debt financing process with FUNDED look like?
FUNDED guides the entire debt process in six steps: screening the venture and the market, signing the mandate, preparing deal materials, and leading communication with capital providers through to the flow of funds. Along the way we handle negotiations, offer evaluation, and timely disbursement of funds.
What does FUNDED's advisory service cost?
FUNDED works on a success basis. The goal is to maximize the financing amount and the likelihood of closing while minimizing the time you need to spend on it.
Who are the investors in your network?
FUNDED partners with leading venture debt providers such as Atempo Growth, BBVA, BlackRock, and Viola Credit.