The use of venture debt has been well-embedded in the US start-up ecosystem for decades, where it's commonly used to leverage funding rounds, fuel growth, and provide a strategic cushion for unforeseen expenses. Its adoption in Europe has been slower, influenced by several factors.
Primarily, the development of venture debt is tightly linked to the equity venture capital market which, historically, has lagged behind the U.S. in maturity. This lag is believed to have directly impacted the growth rate of venture debt.
