Navigating Uncertainty

Utilizing venture debt during a downturn: Risks & opportunities.

April, 2020

About this panel

About

This Navigating Uncertainty session will explore the risks of, and opportunities for, utilizing venture debt during a downturn. Our two guests will be Jake Moseley, Senior Market Manager for Silicon Valley Bank, leading client relationships and risk management for SVB’s core constituency of venture-backed technology companies, and Mark Smith, partner at Goodwin Law’s Debt Finance and Private Equity Group.

Venture debt can be a double-edged sword; join this webinar to get a better perspective on whether it’s a good option for your company. The conversation will include market insights from our two expert panelists with a focus on 2 different situations:

You already have an existing line of venture debt.
- We’ll consider if now is the time to draw it down, and how to assess the risk of waiting as the economy continues to slide. We’ll also cover options for renegotiating repayment terms.
You’re thinking of securing a new line of venture debt.
- We’ll consider whether this type of debt is a cost-effective funding tool, how the terms may be shifting in the downturn, and the terms and conditions under which a company may wish to pursue this type of debt.

Part of the Navigating Uncertainty series.

What you’ll learn

Venture debt lenders’ response to, and evolving attitude toward, the current economic crisis.
Considerations for timing the drawdown of an existing line, including the potential for shifting risk-appetite by lenders over the coming months.
Opportunities to renegotiate venture debt repayment terms for existing debt on your books.
Timing and considerations for seeking new venture debt in the current environment.
Risks to the borrower associated with this type of funding.
How the current environment is impacting terms for venture debt, and which of these terms might be negotiable.

Speakers

Jake Moseley

Senior Market Manager

SVB

Jake Moseley

Senior Market Manager

SVB

Senior Market Manager at SVB

Jake Moseley is the Senior Market Manager for Silicon Valley Bank's National FinTech Practice and Northern California region. He is responsible for the leadership, client relationships, sales and risk management for SVB’s core constituency of venture-backed and independent technology companies in the region, as well as FinTech companies nationally. SVB is the largest venture debt provider to venture-backed companies. Jake and his team work closely with them as they navigate the process of applying for and getting a line of venture debt with SVB.

Mark Smith

Partner

Goodwin

Mark Smith

Partner

Goodwin

Partner at Goodwin

Mark Smith is a partner in Goodwin Law’s Debt Finance and Private Equity Group. Mr. Smith concentrates on complex lending, leasing and commercial transactions for commercial banks, lease finance companies, government agencies, and other financial institutions and businesses. He also concentrates on venture capital financing including debt private placements and loans for venture capital funds, lease finance companies, insurance companies, and businesses. Mr. Smith also has considerable experience with derivatives, letters of credit and UCC matters. Prior to joining Goodwin, Mr. Smith was a partner at Testa, Hurwitz & Thibeault in Boston, where he chaired the Business Practice Group.

Thejo Kote

CEO and Founder

Airbase

Thejo Kote

CEO and Founder

Airbase

A seasoned entrepreneur, Thejo is the Founder and CEO of Airbase, the cloud-based spend management platform for growing companies. Prior to Airbase, Thejo co-founded Automatic which was acquired by SiriusXM in 2017.

A seasoned entrepreneur, Thejo is the founder and CEO of Airbase, the cloud-based spend management platform for growing companies. Prior to Airbase, Thejo co-founded Automatic which was acquired by SiriusXM in 2017.

What you’ll learn

Venture debt lenders’ response to, and evolving attitude toward, the current economic crisis.
Considerations for timing the drawdown of an existing line, including the potential for shifting risk-appetite by lenders over the coming months.
Opportunities to renegotiate venture debt repayment terms for existing debt on your books.
Timing and considerations for seeking new venture debt in the current environment.
Risks to the borrower associated with this type of funding.
How the current environment is impacting terms for venture debt, and which of these terms might be negotiable.