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
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Satisfied Clients
Ranging from stealth start-ups to decacorns
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Advised Funding
In grants and debt
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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.
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Maximisation of financing sums
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Maximisation of closing probability
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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 level of revenue do I need?
Do I need to have raised equity?
Having institutional VC investors on the cap table is a major advantage when raising debt, as it provides lenders with confidence around governance, access to follow-on capital, long-term support, and eventually repayment capacity.
What ticket sizes do you support?
Typical venture debt facilities start at around €3m, with significantly larger tickets possible for more mature or fast-growing companies. We work with a broad range of lenders and can advise on structuring smaller or larger facilities depending on your needs, growth plans, and capital structure.
What business models do you support?
Venture debt providers generally prefer asset-light B2B business models with a high proportion of recurring revenues, such as SaaS-based companies. That said, asset-heavy and/or B2C models can also be financeable, depending on unit economics, margins, customer retention, and overall risk profile. We help position your business model in a way that aligns with investor expectations.
What industries do you support?
We are sector-agnostic and do not work with sin sectors. That said, there is particularly strong lender appetite for technology-enabled companies, including software, digital infrastructure, and tech-driven services. If your business benefits from technology as a core value driver, it is likely to resonate well with the debt market.
What geographies do you support?
We primarily advise companies based in Germany, but regularly work with clients across other European markets. Through our lender network, we can support cross-border financings and help founders navigate the specifics of local and international venture debt markets.
What are the structure and terms of a debt facility?
Venture debt can be structured flexibly, depending on your business and the lender. Structures range from simple term loans with interest-only periods to more complex facilities, including revolving or warehouse structures, sometimes with equity kickers. Pricing and interest rates vary based on risk profile and lender appetite. We bring corporate finance expertise to help you navigate options and secure a structure that fits your growth plans.
Where are your lenders located?
While most of our clients in the venture space come from the DACH region, our lender network is primarily international, including the US, Israel, the UK, and Spain. This allows us to access a broad range of perspectives, structures, and risk appetites for our clients.