Venture Debt - BBVA Spark

Grow and scale without losing control over your business

Increase your runway by minimizing dilution with venture debt.

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What is venture debt?

What is
venture debt?

Venture debt is a long-term financing product aimed at boosting your company’s growth.

It is an ideal alternative to complement your latest equity round led by Venture Capital funds.

Venture debt is normally provided at the same time or right after an equity round.

It is structured as a term loan, usually between 24-48 months. After an initial drawdown or interest-only period, the principal is paid monthly until maturity.

In addition to the interest rate and structuring fees, the bank typically receives a percentage of the nominal loan in stock or warrants at a pre-agreed valuation.

Why use venture debt?

Why use
venture debt?

Control

Reduce your dilution and stay in control of your business.

Savings

It has a lower cost of capital compared to equity.

Flexibility

You can use the funds for multiple purposes and draw in tranches.

Venture debt is the perfect product for your company if you…

Venture debt is the
perfect product for your company if you…

01

Are a tech company in any of these verticals: SaaS, greentech, mobility, consumer services, healthtech, proptech, fintech, etc.

02

Are growing at double digits and need to invest in software development, entering new markets, acquire a competitor, or simply extend your runway while minimizing dilution.

03

Have proven that you can generate growing revenues with attractive unit economics.

04

Have raised an equity round in the last few months or are in the process of completing a Series A round.

05

Have local or international Venture Capital funds on your cap table.

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