Venture debt and private credit are not the same thing

Venture debt and private credit are not the same thing. The confusion costs companies time and money.

Venture debt is typically offered by specialized lenders to venture-backed startups. It sits alongside equity and is often used as a bridge between funding rounds. The lender is betting on the startup's ability to raise again.

Private credit is broader. It covers a range of debt instruments for growth-stage and established businesses that need capital outside of traditional banking. No VC backing required. No equity round needed. Just strong cash flows and a clear use of funds.

For many businesses in MENA and Europe, private credit is the more relevant option. But because the two terms get used interchangeably, companies end up looking in the wrong place.

Significa structures private credit facilities for businesses across MENA and Europe. Ticket sizes from $1M to $100M.