March 31, 2023
Breakfast
Opening Remarks
Presentation
A Technical Breakdown of Venture Debt Underwriting Models
- Underwriting models – Sponsor-driven vs. company fundamentals-driven vs. structured deals
- Similarities and differences / Pros and cons
- The benefits of properly structured venture debt to companies, management teams, investors, and lenders
- Use cases of different venture debt models for win/win/win results
Chief Operating Officer and Chief Investment Officer
Horizon Technology Finance
Speaker
Presentation
Exploring Revenue-Based Funding for Recurring Revenue Business Models
- Overview of how the "RBF" strategy works
- Understanding the offer: funding amount, share %, average monthly revenue, repayment period
- Flat fee vs. variable collection
- Examples: revenue-based funding in action
Presentation
Lender Landscape: The Current State of Small Business Lending by FinTechs
- Why FinTechs are typically faster to fund
- How your company builds credit when other scoring models are taken into account
- Streamlined operating structure removes many pain points for SMBs
- Blockchain systems and other tech enhancing security
Presentation
Venture Debt: Trends & Traction
- Fresh data and insights from Runway’s Venture Debt Review, 3rd edition
- Actionable information for entrepreneurs, venture funding providers and lenders, as well as commercial bankers
- An evaluation of the current market sentiment for venture debt
Networking Break
Panel
Fundraising For Venture Debt Funds
- Explaining the value of your strategy to prospective investors
- Working with pension fund managers
- Promoting private credit venture debt funds as an attractive but separate asset class
- Focusing the fund on a specific market sector to attract savvy investors
- Partnering with VC firms: pros and cons
- Biggest concerns that equity investors and companies have when raising venture debt
Presentation
Highlighting the Differences Between Venture Debt Use in Banks vs. Funds
- Banks may have lower cost of capital
- Funds may not be as constrained by banks in the amount they can invest
- Who is typically more supportive – banks or funds?
- Understanding financial covenants
- Due diligence: just as important for investors as companies
Presentation
Venture Debt for the Borrower’s Perspective: What Your Terms Need to Be to Win a Deal
Lunch
Presentation
Lessons from a Recovering Venture Capitalist: The Realities of Raising Capital
- Revealed: why you may not be receiving term sheets or funding
- Considering funding paths that align with founders' ownership preferences and company goals
- Removing inefficiencies in raising capital -Understanding the costs, both obvious and obscure of a capital raise
- Planning the fund-raising cycle for success
Presentation
The Impact of ESG Focused Finance in Venture Debt
- Trending: Venture debt funds being created for socially responsible companies lacking access to traditional financing
- Understanding the benefits of ESG-focused finance: funding sustainable businesses with liquidity problems, avoiding lost employment of vulnerable groups, mobilizing capital from co-investors
- Promoting impact investment to achieve collaboration and sustainability
- Selection considerations when funding ESG-focused companies
Networking Break
Presentation
Why Late-Stage Venture Lending is Still the Domain of Banks and Business Development Companies
- VC Firms still more likely to invest at expansion stage
- Biz dev firms and banks attracted to companies nearing a liquidity event (sale, IPO)
- Bank and biz dev solutions won’t cause dilution
- Understanding the role warrants play in late-stage venture lending
Presentation
Understanding the Targeted Marketing of Business Credit Cards to VC-Backed Startups
- How to define the addressable market for targeting business credit cards to startups
- What’s the best channel strategy to reach the target
- What are the key differentiators in the value proposition to attract this unique segment
- How to develop brand advocates to support social media marketing
- How to make credit decisions when your target market customers are pre-revenue
Closing Remarks
Timely Topics and Innovative Programming
Here are some of the unique presentations and panel discussions we’re developing for The Venture Debt Conference:
- Industry dynamics: The size and shape of the venture debt market, historical performance and future growth projections
- Understanding the venture debt underwriting process: Creditworthiness and assessment of equity sponsors
- Understanding debt structures for working capital vs. growth capital
- Timing considerations: Raising debt alongside equity, raising between equity rounds, raising to fund an acquisition and the unique considerations of each approach
- Typical financing terms of venture debt and how they differ from traditional bank loans
- Common venture debt options including equipment financing, accounts receivable financing, and term loans
- How companies are using venture debt to extend their cash runway and minimize equity dilution
- The lender landscape: Commercial banks, specialty finance firms, alternative lenders, business development companies
- Exploring revenue-based funding for recurring revenue business models
- Senior venture loans vs. subordinated debt structures
- Royalty-based funding for life sciences companies
- Why late-stage venture lending is still the domain of banks and business development companies
- Using hybrid securities including convertible bonds, preferred stock, and debt with warrant kickers
- Understanding the use of convertible debt at both early and late-stage private companies
- Alternative lending structures including lines of credit, bridge loans, factoring, and merchant cash advances
- Understanding the targeted marketing of business credit cards to VC-backed startups
- How macro credit conditions and economic indicators impact the venture debt market
- Market participants: Lenders, underwriting and credit companies, loan servicers, and loan brokers
- Understanding possible headwinds in lending to startups including rising interest rates, increasing defaults, and reduced equity funding
- Evaluating the growth of the venture debt market by sector
The Venture Debt Conference program is currently in development.
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