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Tech Startups Are Turning to Venture Debt to Survive Bear Market

  • Credit is helping tech firms navigate a tough funding climate
  • Investors want to avoid “down rounds” that hurt portfolios
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Source: vchal/Getty Images

Tech startups are relying on debt to get them through a tumultuous period as equity valuations slump and the era of venture capital largesse draws to a close.

Credit, rather than equity, is helping tech companies keep their operations going while avoiding a damaging “down round”, investors and tech startup heads said at the Web Summit conference in Lisbon this week.