Stride Ventures On India's Venture Debt Market Prospects

The video discusses the growth of venture debt in India, driven by the rise in venture capital. It highlights the complementary nature of venture debt to equity financing, especially in fintech and consumer sectors. The market is expected to grow significantly, with startups increasingly considering venture debt as a viable option. The video also covers the risk-reward profile of venture debt, noting its low loss ratio and the importance of understanding its use cases. Key sectors like consumer and fintech are leading the adoption of venture debt, with benefits such as reduced equity dilution.

What has been a significant driver for the growth of venture debt in India?

• Decline in traditional banking

• Increase in government funding

• Rise in real estate investments

• Growth of venture capital

How is venture debt typically viewed in relation to venture capital?

• As a competitor

• As a replacement

• As irrelevant

• As complementary

During the pandemic, why did many founders turn to venture debt?

• To hire more employees

• To expand internationally

• To increase their cash reserves

• To avoid equity dilution

Which sectors are primarily benefiting from venture debt in India?

• Consumer and Fintech

• Healthcare and Education

• Real Estate and Agriculture

• Manufacturing and Logistics

Why is venture debt particularly useful for consumer brands?

• It increases employee retention

• It supports inventory and receivables

• It helps in brand marketing

• It reduces product costs

What is the typical loss ratio for venture debt as an asset class?

• 5%

• 10%

• Less than 1%

• 15%

What security measures do lenders take when providing venture debt?

• They require personal guarantees

• They limit the loan amount to $1 million

• They secure company assets and intangibles

• They demand high interest rates