Venture debt financing is an increasingly popular source of funding for growth companies in Europe, reaching record highs in 2024 with a deal value of €25.4 billion, according to PitchBook. With this growing interest, we are seeing a broader range of providers in the market, from established financial institutions to a wide range of funds.
Most founding management teams get going through a blend of funding from friends and family and good old boot-strapping. But as a high-growth company begins to prove that it has reached first base (let’s call that product-market fit), it will begin to appear on the radar of a broader range of investors.
Debt funding can be a crucial form of growth financing for start-ups and scale-ups, many founders do not consider it as an option when raising capital. Yet with the right product – and often when combined with equity investment – debt funding can help supercharge a promising company’s growth opportunities, taking them from startup to a market leader.