Venture debt firm 8vdx raises $3million in seed funding led by Y combinator and others
- ByStartupStory | May 27, 2022
8vdX, a venture debt platform for investors and start-ups, has raised a $3million fund in a seed funding round. The round was led by Y Combinator and other investors including GMO Venture Partners, Zillionize, Cathexis, Grant Park, and Asymmetry Ventures. The round also included angel investors Vikram Chachra and Kevin Moore.
In the next 18 months, the firm aims to complete the establishment of a technology platform, provide capital to 250 startups, and have assets under the management of $75 million.
One of the angel investors Vikram Chachra said “In just three months, we have an AUM of $5 million and are growing 25% per week. By providing venture debt, we complement the seed round of early-stage startups, with minimal dilution of equity for the founders. We have garnered strong interest from institutional investors who want to get exposure to the debt of high-growth tech companies. In addition, we plan to set up an India-specific alternative investment fund that may invest in startups outside of YC
Founded in 2021 by Ravi Chachra and Vijay Lavhale, 8vdX is establishing a platform that gives capital access to financing when they need it most before they issue stock. The start-up provides low dilution acceleration finance to entrepreneurs accepted into the YC program and assists them in meeting their Demo Day objectives. 8vdX is a member of the YC winter class of 2022, and it provides venture finance to help other founders avoid dilution across industries and continents. 8vdX expects principal repayment in a short period of time and equity kickers, which the business offers, to produce upside over extended time horizons. The firm provides investors with a combination of debt-like downside protection and equity-like gain. The startup will begin by focusing on the YC environment. They want to offer venture finance to entrepreneurs outside of YC in the future.
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