venture debt

“So the debt is generally structured as a medium term loan. It's two years to three years depends with every structure. The loan is always a monthly repayment and monthly amortization, and the intention of that is to lower the burden on the company.”

“Our, you know, underwriting really starts with looking at, you know, who the investors are and you know, how much has gone into the company? How deep are the investors pockets to keep supporting the company when they need it? What is the path forward for the c…”

“The two safest times to lend in our opinion are one is when the company is a large, you know, it's a mature adult, and the other time is when it's a small startup that is working very closely with the VC and being protected by the VC.”

“So in a sense, we think of venture debt as a way to extend the cash flow runway for the company involved. And in a way it helps to protect dilution and valuation.”

“For us on the debt side it's not so important to be able to see, look out five years and pick the winners. That's not how we would underwrite. How we would underwrite is we need to necessarily be more short term in how we think about the next round coming toge…”

“Venture lending flew in the face of everything that we knew as a bank. As the underlying trade principles of how you lend to corporates. It didn't work. You had companies that were burning cash. You had companies that had no quote unquote valuable collateral.”

“Sometimes VCs do want to play, ah, in, in, in spaces where they have to explore certain models which are emerging, ah, but there is still some time to go before those models are approved, and, you know, that's not a risk that should be, ah, leveraged, in my op…”

“If you look at West it's a, It has, like, 10 to 12% of the market cap to venture debt in terms of funding a lot of companies.”

“Now, actually, if you see broadly Siddharth, the ecosystem in India for venture debt, it's very underpenetrated. If you see in the West, it's a very, very mature market. There's a significant venture debt to venture equity presence. Whereas in India, it's stil…”

“I think US it's already like a 12 to 15% of the VC market size. In India that will be like almost five to six percent only so we have a big headway on that side itself in terms of the expansion of the market”

“We started positioning ourselves on that the dead side to become your working capital partner, and use the money for creation of assets, whether that is business assets, KPEC assets, or even your working capital, and you use your equity money for burn, and you…”

“That space we feel is a little bit crowded and getting competitive.”

“The IRR on those transactions is much higher because you also have fees etc on it and your principal also starts coming back. So the IRR can range from 16% to 21% plus in some cases you will get warrants.”

“In venture debt space itself, though we have given four 50 crores to date, we have already got more than 250 crores already back. In terms of, you know, repayments on the principal side.”

“Our view is we, on the debt side, if we can avoid litigation, NCLT, bankruptcy, et cetera to do settlements as much as we can, to do restructuring if required, give people, founders more time. If they're good founders, if you haven't funded a fraud you will ge…”