Description
Venture Debt in the German Market – Distinction from the Legal Institution of the Shareholder Loan and Equivalent Third-Party LoansDr. Stefan Gottgetreu — Lawyer and Partner Bird & Bird, Düsseldorf
Andrea Schlote — Lawyer and Counsel Bird & Bird, Munich
Venture debt, that is to say risk loans, is still a relatively new and innovative financing instrument in the German venture capital and start-up scene. In essence, it is a form of debt financing – originating from the Anglo-American region – which is granted by specialised providers, mostly private debt funds, to suitable growth companies (scale-ups/later stage start-ups). In the current difficult market environment for equity rounds, venture debt may play an even greater role in financing innovations in the future than it has in the past.
Additional information
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Title | Venture debt in the German market - differentiation from the legal institution of shareholder loans and equivalent third-party loans |
Author | Dr. Stefan Gottgetreu |
Position author | Lawyer and Partner Bird & Bird, Düsseldorf |
2. author | Andrea Schlote |
Position 2. author | Lawyer and Counsel Bird & Bird, Munich |