Back
Venture Capital
Venture Debt Entices Yield Hungry Investors
Alternatives Watch - January 28, 2021
Investors looking for an intriguing mix of steady income, short-duration debt and a low-risk investment strategy may have just found a new asset class in venture debt.
Overall, the space is tiny when compared to other credit markets, representing an estimated $18 billion in total assets in 2020. The prospect of 20%-plus returns is creating buzz as investors seek out alternatives to traditional debt and venture capital investing, according to Zack Ellison, founder of Los Angeles-based venture debt specialist firm Applied Real Intelligence (A.R.I.)
According to Ellison, the venture debt market...