Venture Debt

Venture Debt Course Overview

This Venture Debt course explores key concepts for venture debt lenders. These lenders target companies in early growth stages that are considered too risky for traditional lending institutions. Venture debt lenders are uniquely positioned to help these companies achieve their goals while earning a lucrative return, creating a win-win scenario for both parties.

To lend to early-stage companies, venture debt lenders must consider different factors that are unique to this space. This course will dive into topics such as the early enterprise lifecycle, use cases for venture debt, the funding process, the use of warrants, and key venture analysis metrics before introducing and working through a venture debt risk rating model and an example term sheet.

Venture Debt Course Learning Objectives

Upon completing this course, you will be able to:

• Explain the early enterprise lifecycle, where venture funding fits within it, and the most common uses of venture debt
• Navigate the funding process
• Examine how warrants work
• Interpret a venture debt risk rating model and discuss the key analysis metrics used to assess a transaction
• Analyze an example borrower and risk rate them using a dynamic venture debt risk rating model

Venture Debt is an Elective Course of CFI's CBCA® Program

CFI's Commercial Banking & Credit Analyst (CBCA)™ Program offers skills including credit evaluation, documentation, and review procedures. From beginners to advanced users, the CBCA® program is designed to help you become a world-class commercial banker or credit analyst.

Who Should Take This CBCA® Course?

This Venture Debt course is suited for current and aspiring lending professionals, including credit analysts that are interested in the venture debt space. Commercial lenders and analysts can work for many different types of financial services firms, and it’s important to understand the tools available to support a variety of different borrowers. This course will prepare you with the knowledge you need to identify and apply alternative financing strategies.