# What is Venture Debt? Definition & Technical Mechanics

> **Source:** [SPIDITS AI Startup & Venture Intelligence Glossary](https://spidits.com/startup-glossary)  
> **Category:** Funding  
> **Canonical Citation:** [https://spidits.com/startup-glossary/venture-debt](https://spidits.com/startup-glossary/venture-debt)

## Definition
Venture Debt is a type of debt financing provided to venture-backed startups, designed to extend runway between equity rounds without causing additional dilution.

## Architectural Mechanics & Deep Dive
Venture Debt is a type of debt financing provided to venture-backed startups, designed to extend runway between equity rounds without causing additional dilution.

## Industry Applications & Real-World Use Cases
Runway extension alongside equity funding

## Frequently Asked Questions

### Who is eligible for venture debt?
Usually startups that have recently raised a priced equity round from institutional venture capital firms.

### Does venture debt require collateral?
It is typically secured against the company's assets and patents, and often includes warrants to purchase equity.

## Related Terminology
- [venture-capital](https://spidits.com/startup-glossary/venture-capital)
- [runway](https://spidits.com/startup-glossary/runway)
- [dilution](https://spidits.com/startup-glossary/dilution)

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*From the SPIDITS AI Knowledge Base (300+ terms indexed). Explore full technical definitions: [https://spidits.com/startup-glossary](https://spidits.com/startup-glossary)*