Fostering Growth without Diluting Equity

For companies at critical stages of development, debt can serve as a key financing option to foster growth, with minimal dilution of equity ownership. At Hercules, not only do we understand the industries of our portfolio companies, but we also understand the growth process - and occasionally the growing pains - they undergo.

When venture debt is used appropriately alongside existing venture capital, we believe entrepreneurs gain the following benefits:

  • Able to raise capital in a way that benefits the team and the business as a result of the greater flexibility offered by venture debt than traditional forms of debt financing
  • Have more time between equity rounds to build the business and achieve critical milestones, which creates potential for greater valuation
  • Retain a larger ownership stake in the company prior to an IPO or other liquidity event
  • Achieving milestones quickly in many cases also means reaching the IPO stage more rapidly