top of page

Spinta Bytes Blog

Venture Debt Leverage Multiples

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.






Recent Posts

See All

Venture Debt Terms - Mid 2023

While Barbie vs Oppenheimer debates rage this week, we wanted to offer more interesting discussion fodder – venture debt terms. With the dramatic decline in equity flows, higher rates, and bank failur

How the Most Promising Companies Use Debt

Perceptions of debt for venture companies range from “valuable financing tool” to “dynamite in the living room.” To say the least, opinions vary. We are often asked, when should we consider venture d

bottom of page