Venture debt unperturbed by GoMechanic issues; 2023 a vital growth year

For investors, making a loss is part of business strategy, but for venture debt players, default is a risky proposition, yet, players in venture debt segment are unperturbed so far

The recent GoMechanic issue has raised many questions for the Indian startup ecosystem but it also brought into focus one of the asset classes, which has seen a significant rise in the last two to three years: venture debt.

Venture debt as an alternative mode of raising funds among startups started to gain momentum over the last 6-7 years and made a meaningful impact over the last two to three years, especially as the funding winter set in and founders were forced to seek alternative modes of raising funds.

For equity investors, making a loss on an investment is part