#83: Why You Should Consider Venture Debt with Paul Ong
When startups think about how they will pay for things, they first think of bootstrapping with their own money. The goal is to either get to profit naturally, or raise money from investors in order to fuel further growth. Very few people think about venture debt, or the act of borrowing money in order to fuel growth.
That’s why I invited Paul Ong to be a guest with us today. Paul is a partner at Innoven Capital SEA, which provides loans to companies backed by venture capitalists in the SE Asian region, including India and China. We talked about whether venture debt is something startups should consider, and why. Despite not taking equity from your company, the value they provide seems to be quite clear: They can introduce your team to the rest of their portfolio, assist with further equity funding, mergers and acquisitions opportunities, hiring opportunities, and much more.
I asked specifically
– How is venture financing different from being a founder?
– Do you get more leads from VCs or startups?
– How is marketing different for this kind of firm?
– Why would a founder choose to work with you?
– What are your terms?
– How do you justify de-leveraging to future investors?
– Do VCs find this concept digestible?
LinkedIn: Paul Ong Email: [email protected]
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About the Community
On the podcast, Sean talks with entrepreneurs about the reality of their struggle to succeed, as well as answering questions from the community, and sharing nuggets of wisdom from his own life.
Discover through these amazing episodes the courage to open your mind, heart, and soul to the world so you can be the best entrepreneur possible, respect the people you work with, and improve the world with your company while not hurting others or yourself in the process.
Sean is an entrepreneur, investor, and advisor based in SE Asia for over 12 years. He is passionate about Psychology and helping others improve themselves.