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Alternative Capital: The VC Perspective

Chris Schwalbach  ·  January 30, 2022  ·  3 min

Enjoy a candid conversation with three venture capitalists who share their insights and experience leveraging alternative capital.

Many stakeholders can find Alternative Capital and Venture Debt a tricky and sticky subject. For example, during the webinar, Chris Marks brings up a notable quote/tweet from Paul Graham, founder of Y Combinator:

"Even the best startups often go through near-death experiences.
The problem with Venture Debt is that it tends to turn
near-death experiences into death experiences. Avoid it if you can."

Yet, the VCs on our panel share some insights to reframe Alternative Capital as a potent and helpful tool to understand well. There are many unique perspectives on how, when, who, and why to leverage Alternative Capital. Proceed with care! And we hope this webinar will provide you with some new insights as well.

This session features:

Below is a list of the topics & questions that we discussed during the webinar to help you pinpoint something of particular interest. 

Key Questions

    • 0:00 - What's your overall perspective on leveraging Alternative Capital like Venture Debt as part of the capital stack?
    • 7:05 - What's the right timing for a startup to begin pulling the trigger on bringing in non-dilutive capital?
    • 12:30 - What tips for CEOs/Founders to ensure they're selecting a solid Alternative Capital provider?
    • 15:15 - How critical is it to understand your investors' perspectives on Alternative Capital before their investment?
    • 20:05 - What can you share with us about leveraging other types of Alternative Capital such as revenue-based financing?
    • 22:50 - What are standard terms for a Venture Debt deal?
    • 26:20 - Do you see debt covenants that could negatively impact future raises or have other unintended consequences?
    • 29:10 - Can debt deals be flexible enough to adjust or fix later as the business matures?
    • 33:40 - What are the most common CEO/Founder misconceptions or missteps you see?
    • 36:05 - How would you advise CEOs/Founders about handling default challenges?
    • 42:20 - Can you share a war story or success story from your direct experience?

This panel on Alternative Capital from the Venture Capital Perspective occurred on January 14, 2022.

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