Venture debt is a niche within the venture capital market that has been growing in importance. In this episode, we ask David Hayers, Head of Venture Debt at Hambro Perks, to explain what venture debt is and how it works.
We start off by going through the basics. David talks about what types of companies venture debt is suitable for, what they look for when doing diligence and how the loans get repaid. We also dig into the typical terms that borrowers get and how those are seen in the market.
After this, we move on to the wider market. We discuss the growth in venture debt and how other market participants are increasingly more accepting of it. We then look at demand in the current environment and how there are good and bad sides to recent market evolution. We also chat about other market participants, including events at Silicon Valley Bank and how David sees the market evolving in the near future.
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David Hayers is Head of Venture Debt at Hambro Perks. Before joining Hambro Perks, David was Head of Growth Finance at Clydesdale Bank/Virgin Money for seven years, preceded by a further year as a Senior Investment Director. During his leadership, the team grew its lending to early-stage, high-growth software and advanced manufacturing businesses by nearly 600% and generated record income. Prior to Growth Finance, David spent eight years in the London-based leverage and corporate finance unit at Clydesdale Bank. Previously, David spent three years in auditing and eight years in corporate finance advisory helping management teams buy and sell businesses, working for several firms including BDO in London and Deloitte in Sydney. He also spent time in industry working for a private equity backed business as an in-house M&A specialist. David is a Fellow of the Institute of Chartered Accountants in England and Wales.