TULA Capital arranges venture debt from $2M-$50M for venture-backed companies, delivering optimal loan terms, warrant structures, and lender relationships. Extend runway 6-12 months between equity rounds without additional dilution.
Venture debt requires specialized lenders who underwrite based on equity backing and trajectory rather than cash flow. TULA's deep venture lender relationships and market intelligence ensure optimal terms.
Direct relationships with 35+ venture debt providers—specialized banks (SVB, Western Alliance), dedicated lenders (Horizon, Trinity), and growth equity funds with debt platforms. We know which lenders compete for your specific profile.
Our proprietary database tracks venture debt pricing, warrant coverage, and covenant terms across 300+ transactions. Interest rates, warrant coverage, and terms vary significantly—our intelligence ensures you capture market-best economics.
Optimal timing is 3-6 months after equity raises when you have leverage and runway. We close most facilities in 30-45 days through streamlined materials, direct lender relationships, and proactive issue resolution.
TULA arranges venture debt for companies from Series A through growth stage with institutional venture backing.
Representative venture debt transactions closed by TULA Capital.
Post-$30M Series B runway extension. Negotiated 9.5% interest rate with 8% warrant coverage vs. initial 11% / 12% offers. Extended runway 10 months to Series C at 2x higher valuation.
Post-$18M Series A debt for product development and go-to-market. Structured with performance-based interest-only extension tied to ARR milestones. 10% rate, 10% warrant coverage.
Growth debt supporting expansion into adjacent markets. Covenant-lite structure with minimal financial reporting. Debt complemented $50M equity round without additional dilution.
Our venture debt team is ready to assess your financing options and deliver competitive term sheets. We'll provide preliminary sizing and lender recommendations within 48 hours.
Optimal timing is 3-6 months after closing an equity round when you have leverage and 12+ months runway. Never wait until you're running low on cash—lenders want to support growth, not rescue desperate companies. If you think you might need debt in 12 months, start conversations now.
All-in costs typically range 12-18% annually including interest (8-12%), fees (2-5% upfront, 3-8% final payment), and warrant dilution (~0.5-1.5%). On a $5M facility, expect $750K-$1M total cost vs. 10-15% equity dilution from an equivalent raise—dramatically better capital efficiency when growing into higher valuations.
Warrant dilution impact depends on outcomes. Typical 5-15% coverage on $5M loan creates $250K-$750K warrants. At $500M exit, that's 0.05-0.15% dilution—minimal. View warrants as contingent consideration due only if you succeed significantly, making the dilution immaterial relative to total value created.
Lenders pay TULA success fees upon closing—you never write us a check. Our compensation is percentage-based on facility size, perfectly aligning our incentives with yours. We only succeed when you close optimal financing on favorable terms.
Detailed answers on deal mechanics, warrant structures, and exit scenarios.
Venture debt makes sense when: (1) you've recently closed an equity round and want to extend runway 6-12 months without dilution; (2) you're between funding rounds and need bridge financing to reach milestones; (3) your revenue is growing but you're not yet cash-flow positive; or (4) you need working capital for specific initiatives without triggering a full fundraise. Avoid venture debt if you don't have 12+ months of cash runway, haven't raised institutional equity, or can't service interest payments from operating cash flow or existing capital.
Warrant coverage typically ranges from 5-15% of the loan amount, depending on company stage and risk profile. Early-stage companies (Series A/B) see 10-15% coverage, while later-stage growth companies might negotiate 5-8%. Warrants are usually exercisable at the most recent equity round price (or a small discount), vest immediately, and have 10-year terms. Strike price and valuation are critical negotiation points—some lenders push for ratchet provisions if valuation declines, while companies prefer fixed strikes.
Venture debt has minimal financial covenants given most companies aren't profitable. Typical covenants include: (1) minimum cash thresholds (e.g., maintain €2M liquidity), (2) material adverse change provisions, (3) restrictions on acquisitions or fundamental business changes, and (4) equity raise requirements (must raise €X within Y months). Unlike corporate debt, there are rarely leverage or coverage ratio tests. Most facilities include acceleration triggers tied to equity round failures, material litigation, or regulatory actions.
Yes, but careful structuring is required. Venture debt lenders typically require subordination agreements with convertible note holders, establishing payment priorities and clarifying what happens upon conversion or maturity. SAFEs convert automatically at qualified financings, so venture debt terms must anticipate this. Key issues include: whether SAFE conversion creates senior equity that dilutes warrants, how converted equity affects future fundraising requirements in debt covenants, and whether debt matures before or after anticipated SAFE conversion.
Venture debt typically includes prepayment provisions requiring repayment upon exit events. In acquisitions, debt is usually repaid from transaction proceeds before equity distributions. In IPOs, debt might remain outstanding if maturities align with capital markets access, or companies might refinance with cheaper capital post-IPO. Warrants accelerate—in acquisitions, they're typically bought out at the transaction valuation; in IPOs, they convert to publicly tradeable shares (with lock-ups). Negotiating warrant buyout prices and acceleration mechanics is critical during initial venture debt structuring.