Raising Venture Debt to be lead by Fintech startups says report
- ByStartupStory | March 3, 2022
According to the survey conducted by venture debt firm Stride Ventures, fintech space startups are expected to lead the way in raising venture debt this year which is similar to the trend the previous year. This year, fintech startups will be most actively raising venture debt, said over 45% of respondents for the same. As a part of Stride Ventures’ ‘India Venture Debt Report 2022’ a survey was conducted which shows that about 100 startup founders and venture capital firms took part.
The survey shows that startups in the consumer (14.3%), agritech (11.9%), software-as-a-service (SaaS) (9.5%), electric vehicle (EV) (7.1%), business-to-business (B2B) platform (4.8%) and healthtech (4.8%) sectors will be followed by Fintech. In 2021 also a report has been noticed which states that fintech startups accounted for the highest number of venture debt deals and maximum amount received. A total number of 111 venture debt deals were struck and $538 million disbursement were also seen the previous year, it added.
In the year 2021, the venture debt deals had an average ticket size of $5.85 million, similarly startups raising venture debt had an average age which was close to six years, the previous year. For the first time last year, about 91 companies raised venture debt and among them the startups raising venture debt came in from Bengaluru (40%), followed by Delhi NCR at 27% and Mumbai at 18%, said reports.
According to the survey, the maximum venture debt deals were made at the Series D and beyond stage at 31 as compared with 16 each at Series B and Series C stages. The number of pre-Series A deals was at 17 and Series A venture debt deals was 27. In terms of value as well at $250 million in 2021, Series D and beyond deals cornered the highest venture debt consequently, This year they will resort to venture debt while 100% of growth stage (Series B and Series C) founders said they will take venture debt, said 66.7% of the late-stage founders in a survey. About 85.7% of the early stage i.e. pre-Series A and Series A founders also planned to raise venture debt this year
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