When your company just needs to grow, why would you bother diluting ahead of schedule or when the time is not quite right? Venture debt or venture lending is an excellent financial instrument for scaling businesses looking to invest in operational expansion without the caveats attached in raising equity, including but not limited to shareholder dilution and valuation. Long-drawn due diligence and legal costs may also dissuade some businesses from wanting to continuously raise equity when in reality a simple loan or credit facility to bridge short-term cash flows is all that is really necessary. In other cases, a business may have recently secured equity financing and grown well with it but could do with even more cash to reach beyond the indicated metrics such that a better valuation or a lower discount can be argued for at the next equity financing. Additionally, a larger cash balance may help the business reach better terms with an investor as the immediate need for cash is lower. At Stoerseth we are experts at identifying these types of opportunities from a variety of lenders and work with our clients on doing so. We work solely on an introductory basis with these lenders and are not credit brokers. Below is our business process for venture debt.