Venture Capital

How Startups Learned to Love Debt

The percentage of venture rounds containing convertible loans has doubled since 2012.

Debt has become standard for young startups because it allows them to raise small amounts of capital more frequently.

Credit: Sorbetto

As venture capital reaches a high not seen since the dot-com boom, more technology startups are becoming addicted to quick, cheap loans. The percentage of U.S. venture rounds involving convertible debt has doubled since 2012, according to data from research firm Pitchbook Data.

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