5 Reasons By Venture Debt Will Go Through The Roof In The Next 3 Years
December 28, 2021by Genesis Alternative Ventures
19 May 2021/ by CrestBridge
With market awareness of venture debt low, it is private debt’s best kept secret. That hasn’t stopped venture debt from substantially growing its market share of the start-up ecosystem.
Here are 5 reasons why this under-utilised asset class will boom over the next 3 years:
- It is a growth powerhouse with $47b worth of assets under management in 2021.
- There are only a few venture debt managers in the market right now.
- Start-ups like not giving up their equity in return for a cash injection.
- The returns are high relative to other fixed income investments.
- The rise of SPACs complements venture debt.
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