Mid / Later Stage Venture Companies
Leverage multiples for middle market companies are well understood, but how much debt is available to a later stage venture business that is not yet profitable? Based on data from ~25 recent venture debt financings, a clear picture emerges on the drivers of 'maximum debt' as a function of revenue run rate.
Yes...scale, investor reputation, growth, latest equity round all matter. But by far the most important factors are:
Stickiness of customer base (ie revenue retention)
Gross profit margin
Of course comments are always welcome.