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Venture Debt

Non-Dilutive Growth Capital for VC-Backed Companies

TULA Capital arranges venture debt from $2M-$50M for venture-backed companies, delivering optimal loan terms, warrant structures, and lender relationships. Extend runway 6-12 months between equity rounds without additional dilution.

$420M+
Venture Debt Placed
35+
Venture Lenders
30-45
Days to Close
96%
Success Rate

Why TULA for Venture Debt?

Venture debt requires specialized lenders who underwrite based on equity backing and trajectory rather than cash flow. TULA's deep venture lender relationships and market intelligence ensure optimal terms.

Comprehensive Lender Access

Direct relationships with 35+ venture debt providers—specialized banks (SVB, Western Alliance), dedicated lenders (Horizon, Trinity), and growth equity funds with debt platforms. We know which lenders compete for your specific profile.

  • Venture banks and specialty lenders
  • Stage-appropriate matching
  • Competitive process management

Market Intelligence

Our proprietary database tracks venture debt pricing, warrant coverage, and covenant terms across 300+ transactions. Interest rates, warrant coverage, and terms vary significantly—our intelligence ensures you capture market-best economics.

  • Real-time pricing benchmarks
  • Warrant coverage analysis
  • Covenant optimization

Timing & Execution

Optimal timing is 3-6 months after equity raises when you have leverage and runway. We close most facilities in 30-45 days through streamlined materials, direct lender relationships, and proactive issue resolution.

  • 30-45 day closing timelines
  • Strategic timing advisory
  • Minimal management distraction

What We Finance

TULA arranges venture debt for companies from Series A through growth stage with institutional venture backing.

Facility Size by Stage

$2M - $10M
Series A/B companies, post-institutional raise
$10M - $25M
Series B/C growth companies
$25M+
Later-stage, pre-IPO companies

Typical Terms

Interest Rate
8-12% annually
Warrant Coverage
5-15% of loan amount
Term Length
36-48 months
Interest-Only Period
6-12 months

Prerequisites

Recent institutional equity round ($5M+ Series A or later)
Reputable VC investors and board support
9-12+ months cash runway remaining
Clear path to profitability or next equity round

Recent Transactions

Representative venture debt transactions closed by TULA Capital.

$15M
Series B SaaS Company

Post-$30M Series B runway extension. Negotiated 9.5% interest rate with 8% warrant coverage vs. initial 11% / 12% offers. Extended runway 10 months to Series C at 2x higher valuation.

Closed in 35 days
$8M
Series A Fintech

Post-$18M Series A debt for product development and go-to-market. Structured with performance-based interest-only extension tied to ARR milestones. 10% rate, 10% warrant coverage.

Closed in 32 days
$22M
Series C Healthcare Technology

Growth debt supporting expansion into adjacent markets. Covenant-lite structure with minimal financial reporting. Debt complemented $50M equity round without additional dilution.

Closed in 42 days

Ready to Extend Your Runway?

Our venture debt team is ready to assess your financing options and deliver competitive term sheets. We'll provide preliminary sizing and lender recommendations within 48 hours.

Common Questions

When is the right time to raise venture debt?

Optimal timing is 3-6 months after closing an equity round when you have leverage and 12+ months runway. Never wait until you're running low on cash—lenders want to support growth, not rescue desperate companies. If you think you might need debt in 12 months, start conversations now.

How much does venture debt actually cost?

All-in costs typically range 12-18% annually including interest (8-12%), fees (2-5% upfront, 3-8% final payment), and warrant dilution (~0.5-1.5%). On a $5M facility, expect $750K-$1M total cost vs. 10-15% equity dilution from an equivalent raise—dramatically better capital efficiency when growing into higher valuations.

Do warrants significantly dilute founders?

Warrant dilution impact depends on outcomes. Typical 5-15% coverage on $5M loan creates $250K-$750K warrants. At $500M exit, that's 0.05-0.15% dilution—minimal. View warrants as contingent consideration due only if you succeed significantly, making the dilution immaterial relative to total value created.

How does TULA get compensated?

Lenders pay TULA success fees upon closing—you never write us a check. Our compensation is percentage-based on facility size, perfectly aligning our incentives with yours. We only succeed when you close optimal financing on favorable terms.

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