Description
Kyle Peterdy – CFI Education – Venture Debt download, Kyle Peterdy – CFI Education – Venture Debt review, Kyle Peterdy – CFI Education – Venture Debt free
Kyle Peterdy – CFI Education – Venture Debt
Venture Debt
Put on your non-traditional debt-financing hat to examine how venture-stage companies employ this non-dilutive funding source.
Learn how venture debt differs from more traditional forms of commercial credit
Explore funding milestones, warrants, and important venture-stage metrics
Practice on an example client with a risk rating model and a term sheet
Overview
Venture Debt Course Overview
This Venture Debt course explores key concepts for venture debt lenders. These lenders target companies in early growth stages that are considered too risky for traditional lending institutions. Venture debt lenders are uniquely positioned to help these companies achieve their goals while earning a lucrative return, creating a win-win scenario for both parties.
To lend to early-stage companies, venture debt lenders must consider different factors unique to this space. This course will dive into topics such as the early enterprise lifecycle, use cases for venture debt, the funding process, the use of warrants, and key venture analysis metrics before introducing and working through a venture debt risk rating model and an example term sheet.
Venture Debt Learning Objectives
Upon completing this course, you will be able to:
Explain the early enterprise lifecycle, where venture funding fits within it, and the most common uses of venture debt
Navigate the funding process
Examine how warrants work
Interpret a venture debt risk rating model and discuss the key analysis metrics used to assess a transaction
Analyze an example borrower and risk rate them using a dynamic venture debt risk rating model
Who should take this course?
This Venture Debt course is suited for current and aspiring lending professionals, including credit analysts that are interested in the venture debt space. Commercial lenders and analysts can work for many different types of financial services firms, and it’s important to understand the tools available to support various borrowers. This course will prepare you with the knowledge you need to identify and apply alternative financing strategies.
What you’ll learn
Introduction
Introduction
Learning Objectives
Download Course Files
Venture Debt
Benefits of Venture Debt
Early Enterprise Lifecycle
Uses of Venture Debt
Interactive Exercise 1
Venture Debt and the 5Cs
Risk vs. Cost
Comparison of Funding Sources
Interactive Exercise 2
The Funding Process
The Funding Process
Origination and Initial Screening
Term Sheet
Due Diligence
Interactive Exercise 3
Legal Documentation and Funding
Warrants
Warrants
Advantages and Disadvantages of Warrants
Pricing Warrants
Exercising Warrants
On Commitment or On Usage
Interactive Exercise 4
Midway Check-In
Midway Check-In
Venture Debt Risk Rating Model
Model Overview
Management Assessment
Industry Assessment
Marketability Assessment
Business Assessment
Interactive Exercise 5
Financial Metrics
Revenue Growth and Runway
Gross Margin, Recurring Revenue, and Total Assets to Total Debt
Customer Financial Metrics
Model Walkthrough
Interactive Exercise 6
Client Case Study
Client Introduction
Qualitative Assessment
Revenue, Gross Margin, and Historical Financials
Pro Forma Financial Statements
Risk Rating and Interpretation
Download Completed Files
Term Sheet
Term Sheet Introduction
Non-Binding Agreement and General Information
Currency
Amount and Seniority
Interest Rate
Maturity and Schedule
Early Prepayment
Conditions and Key Employee Commitment
Security
Interactive Exercise 7
Restrictions and Usage of Fees
Warrants
Success Fee
Deposits and Fees
Information Rights and the Right to Audit
Default
Confidentiality and Exclusivity
Closing Items
Interactive Exercise 8
Conclusion
Conclusion
Qualified Assessments
Qualified Assessment
