Entrepreneurs might consider venture debt for several reasons:
Extend Runway: It helps in extending the runway of a startup, giving more time to achieve milestones and increase valuation before the next equity round. Minimize Dilution: As it is a debt instrument, it leads to less equity dilution compared to equity financing. Operational Flexibility: The additional capital can be used for various operational needs such as hiring, marketing, and product development without giving away significant control of the company.