When people think of how early-stage companies finance their initial growth, venture capital and private equity are often the first things that come to mind, but growth and venture debt have become increasingly prominent in the financial landscape, especially in the wake of the collapse of Silicon Valley Bank. Ross Ahlgren, a portfolio manager in the growth debt team at BlackRock, joins Oscar to help us understand the current themes driving growth and venture debt opportunities, how his team identifies and evaluates emerging trends, and the role of relationships and local presence shaping the future of this market.
Go back and listen to episode 120 "Why Are These Events Different to 2008?" where we break down what happened at Silicon Valley Bank in 2023.
00:00 Introduction to Venture and Growth Debt
01:31 Understanding Venture and Growth Debt
02:45 The Role of Venture Debt in Company Expansion
04:28 Misconceptions and Risk-Reward in Venture Debt
07:13 Impact of Silicon Valley Bank Collapse
13:32 Regional Differences in Venture Debt
15:01 Investment Opportunities and Risks
18:53 Conclusion and Final Thoughts
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This content is for informational purposes only and is not an offer or a solicitation. Reliance upon information in this material is at the sole discretion of the listener. Reference to the names of each company mentioned in this communication is merely for explaining the investment strategy and should not be construed as investment advice or investment recommendation of those companies. In the UK and Non-European Economic Area countries, this is authorised and regulated by the Financial Conduct Authority. In the European Economic Area, this is authorised and regulated by the Netherlands Authority for the Financial Markets. For full disclosures go to Blackrock.com/corporate/compliance/bid-disclosures
venture debt, debt financing, growth capital, business growth, financial support, investment capital, the bid, blackrock investment strategies, finance landscape
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