Point Financial, Inc.

Venture debt creates an insurance policy against having to seek new funding at a lower valuation because key milestones have not been achieved. It also provides the extra runway needed to reach key milestones, which in turn makes raising the next round of financing easier and generally boosts valuations. If the company meets the milestones and borrowing turns out to be unnecessary, then paying interest on the loans is significantly less expensive than financing the entire business with equity.