Venture debt is a form of debt financing for venture capital-backed companies that is complementary to equity financing. The debt is typically structured as senior debt with tenors of up to three years, with monthly repayment structures that include a fixed coupon and some equity kickers. Venture debt involves significantly less dilution compared to equity for the founding team and investors. It also helps stakeholders improve the returns on their equity ownership. Venture debt funds typically work closely with venture capital investors and management teams as a differentiated capital partner to a company.