Proven’s Hot Take:
Venture Debt & Why It’s a Win for Founders
The venture debt market just hit an all-time high, and we’re not surprised. According to Pitchbook, the alternative financing instruments reached a record $53.3 billion in 2024, nearly doubling from 2023. This surge is driven by later-stage startups turning to alternative financing to balance sustainable growth without the pressure of hypergrowth that traditional VC often encourages.
While traditional VC funding has its place, more founders are realizing that profitability and ownership don’t have to be at odds with scaling. Here’s why we think venture debt is a smart play for the right businesses:
Unlike the "grow at all costs" mindset of equity fundraising, venture debt works best for companies with strong fundamentals. At Proven, we love working with capital-efficient businesses that prioritize sustainable growth over flashy burn rates.
Profitability First
Retaining Ownership
Founders put in the work, so why give up more equity than necessary? Venture debt allows teams to scale while keeping more of the upside—meaning you stay in control of your company’s future.
We get it, timing is everything. With the right debt structure, founders can invest in product development, hiring, or expansion while managing payments in a way that aligns with revenue milestones.
Flexible Payments, Smarter Cash Flow
The takeaway? Venture debt isn’t just an alternative—it’s a strategic tool for founders who want to grow on their own terms. Proven Venture’s debt-equity financing is perfectly positioned to support bridge rounds, bootstrapped businesses looking to accelerate growth without sacrificing ownership, and support final capital infusions before an acquisition or exit.
If you’re building a capital-efficient business and want to explore how venture debt can fuel your next stage of growth, let’s talk!