Understanding Venture Debt and the Capital Stack

This chapter explores the intricacies of venture debt and its critical applications, emphasizing the significance of the capital stack in adverse situations. Listeners will learn about the various types of lenders and how their roles influence financing choices, equipping them with essential strategies for effective capital management.

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The venture debt landscape has changed dramatically over the past few years, and CFOs can’t afford to be left behind. Catherine Jhung, Senior Managing Director at Hercules Capital and a seasoned expert in venture lending, joins CJ to explore the landscape of venture debt in 2025. Together, they unpack important questions for CFOs approaching lenders, the delicate balance between rate and flexibility, and a surprisingly overlooked use case for venture debt. You’ll also hear when not to raise debt, how to determine the right amount for your capital stack, what really separates banks from private debt funds, and the complex dance between VCs and debt providers. Plus, Catherine sheds light on the concept of capital as a commodity and how her early career in sales shaped her approach to selling the one thing every company needs: capital.

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LINKS:

Catherine Jhung on LinkedIn: https://www.linkedin.com/in/catherine-jhung-she-her-434732/

Hercules Capital:

https://www.htgc.com/

Ventured Growth: https://www.htgc.com/category/podcast/

CJ on X (@cjgustafson222): https://x.com/cjgustafson222

Mostly metrics:

http://mostlymetrics.com

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(00:00) Preview and Intro