Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Venture debt is on the rise in the startup world as more startups find it a useful part of their fundraise strategy.

It’s a form of debt financing for venture-backed companies that lack the assets for traditional debt funding.  

Venture debt has been around for as long as venture capital has been writing checks for equity investments. 

It’s often used in conjunction with an equity fundraise.

It typically runs for three years and is secured by the company’s assets.  

Venture debt reduces dilution and gives the startup more runway before the next fundraise.

It lets the startup acquire more capital without setting a valuation for the company which is advantageous in advance of a new round of equity funding. 

Venture debt does not take board seats and is often cheaper than bank loans.

Venture debt is a more quantitative decision than equity capital which is more qualitative so the closing is typically faster.

The disadvantage is that it must be paid back in the near term and interest rates are typically higher than bank debt.


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Music courtesy of Bensound

In this episode, Hall welcomes Ron Thompson, CEO of CAIL.

Headquartered in Winnetka, Illinois, CAIL successfully enables organizations to leverage the considerable investment in current systems and services with solutions that provide an evolutionary strategy to evolve and improve information services.

This approach provides clients with immediate and important advantages with products having extensive flexibility, scalability, and being cost-effective. In conjunction with this, the CAIL emphasis is on delivering a great user experience, quick gratification with the fast deployment of new services, providing solutions with advanced capabilities that build on the familiarity with current systems and processes, and realizing a rapid return on investment.

CAIL’s IoT department provides “Smart Facilities Solutions” for the new-normal with Contact Tracing, Occupancy Monitoring, Predictive Cleaning, Asset Tracking, Environmental Monitoring, Air Sanitization, etc. To better ensure building safety and wellness, these solutions provide real-time data, analysis, and reporting to make smarter decisions, extend services, provide more value, better assess business risk, and respond to feedback quickly. By connecting buildings, assets, people, and devices through a range of ready-to-deploy IoT solutions, this results in improved tenant satisfaction and property management as well as reducing operating costs and health risks.

From making many venture investments and having numerous insights on how to innovate for impact, Ron encourages entrepreneurship to improve outcomes and help people realize their potential. This is based on Ron having an extensive background in technology and in business, as well as collaborating with others having strong look-ahead skills and high competencies to create value and manage risk. 

Ron describes the types of companies he likes to invest in, discusses the state of startup investing, and advises entrepreneurs and investors.

You can visit CAIL at www.cail.com, via LinkedIn at www.linkedin.com/company/cail_2/, and via Twitter at www.twitter.com/cail_systems. 

Ron can be contacted via email at rthompson@cail.com, via LinkedIn at www.linkedin.com/in/ron-thompson, and via Twitter at https://twitter.com/ronthompson.

Music courtesy of Bensound.