Main Event - Juanita González-Uribe (London School of Economics)
Venture Debt as Bridge Financing
Speaker Bio
Juanita González-Uribe is Associate Professor of Finance at the London School of Economics and Political Science (LSE). Her research focuses on entrepreneurship, innovation, and private equity.
Venture Debt as Bridge Financing
Abstract
Staged venture capital financing lets investors learn before committing further capital, but exposes a startup to financing risk between rounds. Specialist lenders bridge that interval while assessing the prospects for the next equity round. In our model the lender’s capital commitment makes that assessment credible, and a small warrant pays for acquiring it. Using loan contracts hand-collected from six specialist lenders’ filings, we find that lending predicts subsequent equity rounds beyond public information, most where those prospects look weakest; that warrants concentrate in first loans; and that the lender goes on assessing after it has lent. Venture debt thus supports staged venture capital financing rather than substituting for it.
Social event will follow at: 18:30 (post-seminar)
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Complimentary aperitivo: details will be announced soon.
Note: For organizational efficiency, registration is important. Upon registration, you will receive an entry form to allow immediate access to the seminar premises on the day of the event. The complimentary aperitivo has limited space, available on a first-come, first-served basis, with registered seminar attendees receiving priority. However, participation in the seminar remains possible also without registration.
