Looking to extend your company’s runway, accelerate growth, or fund a strategic initiative without giving up more equity? Venture debt offers a flexible way for ambitious, sponsor-backed businesses to scale on their own terms.
Entrepreneurship is a thrilling yet demanding journey. You may start energised and ready to disrupt the market, but as you scale from £10k to £100k, to £1m and beyond, new challenges emerge: cash flow uncertainties, hitting sales targets, and meeting milestones for your next fundraise. As your business grows from early revenue to significant scale, the pressure to secure the right capital intensifies.
Venture debt is a powerful, yet often overlooked, tool that can help extend your runway, accelerate growth, and fund strategic initiatives—without further equity dilution. It complements your existing equity financing and provides flexible, non-dilutive capital tailored to the realities of scaling high-growth, sponsor-backed businesses.
Is Private Credit/Direct Lending Right for You?
Your business is backed by leading VC, PE, or public investors.
You’re looking to extend your runway or accelerate growth.
Preserving equity is a priority for your team.
You need flexible, tailored funding to support your ambitions.
You operate in a high-growth, innovation-driven sector.
Venture debt is a form of growth capital designed for high-potential, venture-backed companies. Unlike traditional bank loans, it is tailored to the needs of innovative businesses that may not yet have positive cash flow or significant tangible assets. Venture debt typically sits alongside equity funding, providing additional capital to extend runway, support expansion, or bridge to the next funding round.
Facilities are commonly structured as term loans with flexible repayment schedules and covenants that reflect the realities of scaling a high-growth business. This structure enables access to meaningful capital while preserving equity and maintaining momentum.
How Fuse Capital Supports Your Growth
Since 2013, Fuse Capital has supported ambitious, high-growth companies in securing venture debt facilities ranging from £2 million to £25 million. Our clients typically have proven products or services, strong investor backing, and a clear plan for scaling.
We guide you through the entire process—from assessing your needs and structuring the right facility, to negotiating with lenders and ensuring the terms align with your long-term goals. We help you evaluate key considerations such as:
Factor
Implications
Warrants vs No Warrants
Warrants can reduce the headline cost of debt but may result in significant dilution if exercised at a higher company valuation. Their true cost is often underestimated; founders should model future scenarios. Negotiating structure and terms is key to balancing affordability with value retention.
Covenants vs No Covenants
Financial covenants (e.g., minimum cash or revenue targets) can lower interest rates but increase the risk of technical default. Breaching covenants can trigger penalties or loan recalls. Covenant-light structures offer flexibility but may come at a higher cost.
No Repayments vs Full Repayments
Bullet repayments ease short-term cash flow but create refinancing risk at maturity. Amortising loans reduce final repayment pressure but may constrain growth capital. The optimal structure depends on cash flow, fundraising plans, and risk tolerance.
Short Term vs Long Term
Short-term loans have lower interest but require earlier refinancing, which can be risky in volatile markets. Long-term loans offer stability but may lock you into less favourable terms over time. Duration risk should align with your business model and funding roadmap.
Cheaper & Less Flexible vs Expensive & More Flexible
Lower-cost facilities often have stricter controls. Flexible facilities (e.g., revolving credit or delayed drawdown) can be more expensive but valuable for seasonal or unpredictable cash flows. Evaluate the trade-off between cost and adaptability.
Global vs Local Lender
Global lenders may offer lower rates but lack local market insights. Local lenders provide closer relationships and quicker decisions. Consider cost, responsiveness, and sector understanding when choosing a lender.
Why Choose Us?
As your trusted debt advisory partner, we provide the expertise and support you need to navigate the complexities of funding. Here's what sets us apart:
Focused Exclusively on Debt
Our exclusive focus on debt advisory means we bring deep expertise to help VC, PE, and PLC-backed businesses secure the right capital efficiently.
True Partnership, Not Just Introductions
We work closely with you to understand your business, develop the right funding strategy, negotiate terms, and support you through every stage of the process.
Built on Real-World Experience
Having built and scaled businesses ourselves, our advice is rooted in practical experience and a deep understanding of the challenges you face.
Results That Speak for Themselves
Trusted by over 550+ businesses across the UK, Europe and APAC, we deliver strategic insight and tailored funding solutions that drive sustainable, long-term growth.
The headline and subheader tells us what you're offering, and the form header closes the deal. Over here you can explain why your offer is so great it's worth filling out a form for.
Since 2013, we have delivered $100m amount of loans to game-changing startups backed by the likes of Google Ventures, Softbank and Atomico amongst many others legendary venture capital firms, accelerators and incubators.
1
Consultation & Strategy:
We understand your goals and craft a tailored debt strategy aligned with your capital structure and sponsor expectations.
2
Lender Matching & Offers:
We connect you with the best-suited funding partners from our global network and present you with carefully matched debt offers.
3
Finalization & Funding:
We support you through negotiation and closing, ensuring a seamless process to draw down funds and accelerate your growth.
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