One of the most misunderstood calculations a founding team can make is when to exchange equity for capital and when you should turn to Venture Debt. We are a Venture Fund, but we are also partners with our founders, and we know that sometimes the better option is Venture Debt. Today’s guests, Tony Barkett, Managing Director of RBCx and Rebecca Skvorc, CFO and Head of Talent at Nudge, talk through the Venture Debt process and when it works (and when it doesn’t)

About Tony Barkett:Tony Barkett leads the delivery of industry-tailored capital financing, business advice, and solutions that go beyond traditional banking. And when he isn’t busy supporting the growth of innovative companies in Canada, he’s a sports coach for his two sons and an avid golfer. He started his career at SVB, and did his undergrad at the University of Massachusetts, Amherst.

About Rebecca Skvorc:Rebecca has 19 years of progressive and diverse financial experience. Prior to her roles at Nudge, she was an SVP at Wave HQ, she’s been in operations and banking for the last 19 years and has successfully closed US$55m in financing over 5 rounds. She got her bachelor’s at Wilfrid Laurier University.

In this episode we discuss:

01:16 Their journey into the tech eco-system03:17 What is venture debt and why is it issued04:38 How Venture Debt has evolved over the last few decades05:54 Venture Debt from an operator’s perspective07:51 Timing to take on Venture Debt as a startup10:41 Incentives for Debt providers to find high-growth companies11:26 How a company can know its ready for a debt-facility13:53 How Rebecca knew Venture Debt was the right course for her companies15:28 The starting points founders should consider when looking at Venture Debt18:55 Other risks founders should consider when looking at Venture Debt21:19 How Venture Debt is evolving for later-stage companies22:47 When should founders look at cleaning up their debt23:42 Can you use equity to solve a debt problem?24:38 Lessons Rebecca learned from her time at Wave HQ25:45 Picking the right lender for you Venture Debt26:53 How Tony has helped companies survive s**t-hitting-the-fan moments29:19 The importance of honesty and transparency with your bankers and investors31:00 Exciting things about today’s Canadian tech eco-system

Tony’s Fast Favorites:PodcastTank Talks

Newsletter/BlogTerm Sheet

GadgetiPhone

New TrendGoing Outside

BookThe Hard Thing About Hard Things

Life LessonTeach them to fish, don’t give them a fish

Rebecca’s Fast FavoritesPodcastAll In Pod

Newsletter/BlogTim Ferris

GadgetiPhone

New TrendTravelling

BookThe Economist

Life LessonHold your loved ones close

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