Research across 59 countries shows venture debt reshapes startup finance by reducing early-stage equity, increasing late-stage investment, and expanding the total pool of capital
A new international study by researchers from the Edinburgh Business School based at Heriot-Watt University has found that venture debt is reshaping how capital moves through technology startup ecosystems around the world.
Analysing data from 59 countries between 2015 and 2024, the researchers show that greater venture debt availability is associated with lower early-stage equity funding, higher late-stage equity funding and a positive overall effect on the total capital available to startups.
This study shows how venture debt doesn’t just fill a gap but rather…