Show Notes
About Today's Podcast
Welcome to the podcast! In this episode, Denis a venture debt investor at Flashpoint, shares insights on venture debt and the qualities he looks for in founders. Venture debt exists as a form of capital that is lower risk than equity and becomes available to companies at a certain level of maturity.Denis discusses various aspects of venture growth debt in this conversation and shares insights into the venture capital industry. He explains the dividend yield and DPI of funds, the management of deal flow, and the importance of taking board seats.
Takeaways
- Venture debt is a form of capital that becomes available to companies at a certain level of maturity and is lower risk than equity.
- Denis looks for companies with clear product-market fit, revenues of at least $5 million, and evidence of growth.
- Unit economics is the fundamental profitability and efficiency of a business or product.
- Flashpoint's deals include a debt instrument with an equity kicker, but they do not co-invest with their equity fund.
- Denis values founders who are resilient, tenacious, and able to pivot in difficult situations. Venture growth debt allows companies to optimize their capital structure and reduce dilution for early investors.
- Deal flow in venture capital can come from various sources, including companies approaching the firm, relationships with other VCs, data-driven analysis, and partnerships with advisors and scouts.
- Taking board seats is important for venture growth debt providers, especially during challenging times, as it allows for better communication and decision-making.
- Raising a fund in the current market is challenging, and stability in the global economy is crucial for making fundraising easier.
Chapters
00:00 Trailer
01:18 Introduction Of Denis
04:20 What is venture debt
13:55 The Importance of Unit Economics in Assessing a Business
16:10 What he looks in founder before investment
20:50 Structuring Deals: Debt Instruments with Equity Kickers
27:06 Fund Size, Check Size, and DPI
30:25 Taking Board Seats in Venture Growth Debt and Deal Flow
34:33 Challenges and Trends in Raising a Fund
37:15 Our Subscribers Questions
47:30 Ritual
49:15 Conclusion
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