I suspect we shall see debt used increasingly in venture-backed businesses. My hope is that operators will constrain its use to areas where debt is a more natural fit. Personally, I’m not there yet on its application to SaaS revenue.

In contrast to VC - where over the past 30 years of software, there’s been a circular “we shape our tools, and then they shape us” coevolution around how equity works - this hasn’t happened for debt yet. We haven’t figured out the right atomic unit

Late-stage VCs often lament that other funds are willing to underwrite to a lower multiple – and thus give higher valuations to companies. If the growth-stage multiple expectations continue to decline, it will only accelerate the relative attractiveness of late-stage debt, both for founders (no dilution) and investors (guaranteed IRR).