Welcome to the Financial Times Lexicon

Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.

 

Term of the day

venture debt

Venture debt is a form of debt financing for emerging venture-backed companies. 

This type of financing has emerged as a means of financing startups that are "in between" more traditional venture capital financing rounds.

Traditional venture capital investments occur in stages: staged equity financing allows for the venture capitalist to ensure that the startup has achieved important milestones before releasing additional investment to the company. Typically, the value of the company will increase...