Latest news with #venturedebt
Khaleej Times
09-07-2025
- Business
- Khaleej Times
Stride Ventures announces first close of ADGM Fund, accelerating venture debt leadership in the GCC
Stride Ventures, a global leader in venture debt, has announced the successful first close of its flagship Abu Dhabi Global Market (ADGM) Fund V, marking a pivotal moment in the firm's strategic expansion across the GCC. With this milestone, Stride Ventures underscores its commitment to becoming the largest provider of highly non-dilutive and flexible shariah compliant capital to high-growth startups across the region, empowering founders with world-class underwriting, deep sector expertise, and transformative capital. Building on a consistently superior track record of deploying over $1.2 billion across more than 170+ high-growth companies worldwide. The firm has already executed several significant transactions in the region, with ticket sizes averaging $10 to $15 million, and a strong $110 million deal pipeline that spans key sectors including fintech, healthtech, logistics, and climate tech. Stride's focus extends beyond capital — the firm brings global underwriting expertise, deep sector insights, and a founder-first, sector-agnostic approach that empowers entrepreneurs. Some of the region's most dynamic startups are already part of Stride's growing portfolio, including Merit Incentives, a leading provider of customer and employee engagement solutions, among others. Through the ADGM Fund V, Stride plans to triple its assets under management in the GCC to over $500 million by 2026, reinforcing its long-term commitment to supporting the region's entrepreneurial and innovation economy. Stride Ventures has doubled its presence across the GCC, with a particular focus on the Kingdom of Saudi Arabia. Supported by an experienced leadership team and an expanding regional footprint, the firm is well-positioned to meet the growing demand for venture debt while contributing to the goals of Vision 2030 by enabling innovation, supporting entrepreneurship, and contributing to job creation. Ishpreet Singh Gandhi, founder and managing partner, Stride Ventures, said: 'The region is at the centre of one of the most dynamic growth stories of our time — driven by a clear vision for economic diversification and global competitiveness. At Stride Ventures, we are here to be a long-term partner in that journey. Through the ADGM Fund, we are committed to providing the capital, expertise, and partnership that ambitious founders and innovators need to build businesses that will define the region's future.' Initiatives in the region continue to play a key role in supporting the ecosystem and Stride Ventures expansion in the region. In Saudi Arabia, the Riyadh Digital Innovation District (RDID), led by the Royal Commission for Riyadh City, has provided an enabling environment for global investors and ecosystem partners. As part of this, The Garage has served as a world-class platform connecting Stride directly with startups, fund managers, and the broader entrepreneurial ecosystem, helping the firm establish meaningful partnerships and a growing presence in the Kingdom. Stride's entry into ADGM, a global financial centre, reflects its commitment to bringing global best practices, institutional discipline, and a strong international network to the region's innovation ecosystem. Stride Ventures is also partnering with top banks in the region to enhance access to venture debt for new-age businesses and provide comprehensive financing solutions tailored for high-growth companies. With a disciplined investment approach and a proven founder-first philosophy, Stride has consistently delivered strong returns, including the full return of Fund I and ongoing distributions from Fund II. Fariha Ansari, Partner at Stride Ventures, shared: 'Saudi Arabia is rapidly positioning itself as a dynamic and promising destination for innovative financing solutions, particularly in growth debt. Driven by Vision 2030's ambitious goals to diversify the economy and foster innovation, the Kingdom's forward-looking regulatory environment is creating exciting opportunities for investors and entrepreneurs alike. The overall momentum and commitment to transformation make Saudi Arabia a key partner in shaping the future of financing across the Middle East. At Stride Ventures, we are energised by the potential here and proud to be part of this transformative journey.'
Entrepreneur
09-07-2025
- Business
- Entrepreneur
From Equity to Debt: Understanding the Shift from Venture Capital to Venture Debt in India's Startup Ecosystem
As capital access tightens amid rising interest rates, this financing shift serves as both protection and a catalyst for India's entrepreneurial landscape Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. In India's evolving startup ecosystem, a significant paradigm shift is reshaping how entrepreneurs fuel their growth ambitions. Fol lowing the unprecedented 2021 funding frenzy that minted 44 unicorns, the eco system now pivots from tradi tional equity financing toward venture debt. This transition, gaining momentum through 2023-24, represents more than a temporary response to the ongoing "funding winter"; it signals a fundamental matu ration in how Indian startups approach capital structure. While Bengaluru, Delhi, and Mumbai lead in funding activities, this equity-to-debt evolution offers founders across regions the ability to extend runways and fund expansions without diluting ownership stakes. As capital access tightens amid rising interest rates, this financing shift serves as both protection and a catalyst for India's entrepreneurial landscape. Ankit Agrawal Executive Director of Asset Management, Venture Debt at Lighthouse Canton Venture Debt Venture debt is a special ized financing instrument for early-stage, high-growth startups with venture capital backing. Unlike traditional loans requiring tangible collateral, venture debt is typically secured against all current and fixed assets of the company, both present and future, including receivables, intellectual property, brand value, etc. This hybrid financ ing bridges conventional debt and equity funding, helping startups extend their runway without diluting ownership. Risk assessment focuses on growth trajectory and ability to secure future capital rather than current cash flows. The strategic advantages of venture debt over conventional equity financing present a three-fold value proposition for the modern entrepreneur. First, its non-dilutive nature preserves ownership integ rity and governance control, enabling founders to maintain decision-making autonomy without board interference or loss of equity value. Second, the financial benefits are substantial - founders gain access to capital with more economical long-term costs compared to equity, faster processing timelines, and the opportunity to establish valu able credit history for future financing options. Third, venture debt offers unparal leled operational flexibility, allowing companies to strate gically deploy capital across various business needs, from funding critical expansions to extending runway between equity rounds, thereby avoid ing potential down-rounds during market volatility. This preservation of equity is particularly crucial for mid to-growth-stage companies aiming to maximize share holder value, while its quick turnaround, often secured within 30 days compared to equity's three-month process, enables nimbler cash flow planning. Additionally, select venture debt funds in India provide the flexibility to allocate capital in USD, simplifying international ex pansion and enhancing global competitiveness. This sophis ticated financing approach is rapidly becoming an essential component in strategic toolkit of India's most forward-think ing founders. Market Analysis India's venture debt mar ket soared to USD1.2 billion in 2023, reflecting a 50 per cent year-over-year increase that underscores its shift from a niche financing instrument to mainstream capital source. By December 2024, overall venture debt funding in India had climbed to USD1.48 bil lion, a 10 per cent rise from 2023, marking the second consecutive year it surpassed the billion-dollar threshold as demand for non-dilutive financing gained widespread traction. This exceptional performance positions India's venture debt ecosystem for continued expansion, with projections suggesting market volume could reach USD1.8-2 bil lion by 2026. While the global venture debt market stands at approximately USD 20–25 billion, India is on a strong growth trajectory, with projections suggesting it could surpass USD 30 billion in 2024. Fintech leads sector adoption with USD 671 million in venture debt during 2023, reflecting mature business models and reliable revenue streams underscored by a 25 fold increase in digital lending volume over the past decade, reaching INR 2.9 trillion. Con sumer startups follow with increasing adoption rates, while electric vehicle compa nies, with 67 per cent relying on venture debt for over half their debt capital, represent a rapidly growing segment. While Delhi NCR leads in transaction volume, Banga lore's FinTech innovation and Chennai's EV manufacturing hubs are also key contribu tors, reflecting venture debt's widespread adoption across India's diverse startup ecosys tems. Venture debt has proven particularly valuable during market downturns, serving as a strategic financing buffer when equity capital becomes scarce. Key Drivers of the Shift The migration from equity to venture debt represents a re sponse to converging macro economic and strategic forces. While traditionally viewed as supplementary, venture debt has gained prominence as founders recognize its poten tial to optimize capital struc ture while navigating complex funding environments. Economic Environment - The persistent "funding win ter" has created equity access challenges forcing founders to explore alternatives beyond traditional venture capital. Current market conditions have generated valuation misalignments, with startups facing unfavorable terms or postponed growth initiatives. Venture debt emerges as a strategic lifeline, enabling companies to extend the runway without accepting valuation cuts. Market Maturity Factors - India's startup landscape exhibits increasing sophis tication, with venture debt benefiting from ecosystem maturation. Founder aware ness regarding optimized cap ital structures has grown, with experienced entrepreneurs recognizing the strategic advantages of incorporating debt components. Investor confidence in venture debt continues to strengthen, evi denced by specialized funds and increasing institutional allocation. Strategic Considerations - Founders' emphasis on own ership preservation represents a compelling driver behind venture debt adoption. By maintaining equity positions, entrepreneurs retain gover nance control and potential upside in future liquidity events. Venture debt offers accommodating repayment terms aligned to companies' growth trajectories rather than rigid schedules. Future Outlook The venture debt landscape in India stands poised for significant expansion reflect ing broader global trends. Industry evolution suggests a continued shift toward hybrid funding approaches that stra tegically combine equity and debt components to achieve optimal capital structures. Market participants can anticipate increased adoption across diverse sectors beyond traditional strongholds, with particular momentum in fintech, consumer startups, and sustainable technology ventures. The flexibility of select venture debt funds to offer capital in USD positions startups to seamlessly expand into international markets, amplifying their global com petitiveness.
Bloomberg
08-07-2025
- Business
- Bloomberg
Brookfield-Backed Venture Unit Starts Credit Fund, Seeking $800 Million
Pinegrove Capital Partners, a manager of venture funds that's backed by Brookfield Asset Management, is raising money for a new credit fund, according to people familiar with the matter. The firm is targeting about $800 million in investor commitments, said the people, who asked not to be identified because the matter is still private. The fund, called Innovation Credit Growth Fund X, will shoot for net returns between 13% and 17%, with a focus on senior secured venture debt to high-quality, VC-backed companies, they said.
Entrepreneur
03-07-2025
- Business
- Entrepreneur
Stride Ventures Marks First Close of ADGM Fund V to Back GCC Startups
The firm has already built a pipeline worth USD 110 million across key sectors including fintech, healthtech, logistics, and climate tech, with typical transaction sizes averaging USD 10–15 million. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Indian venture debt firm Stride Ventures has announced the first close of its ADGM Fund V, marking a significant step in its expansion across the Gulf Cooperation Council (GCC) region. While the firm did not disclose the size of the fund or the amount raised, it confirmed that the vehicle will provide non-dilutive, shariah-compliant capital to high-growth startups. "With ADGM Fund V, we aim to support the region's innovation economy with flexible capital that empowers founders without equity dilution," said Ishpreet Singh Gandhi, Founder and Managing Partner at Stride Ventures. "The region is at the centre of one of the most dynamic growth stories of our time-driven by a clear vision for economic diversification and global competitiveness. At Stride Ventures, we are here to be a long-term partner in that journey." The firm has already built a pipeline worth USD 110 million across key sectors including fintech, healthtech, logistics, and climate tech, with typical transaction sizes averaging USD 10–15 million. Stride Ventures aims to triple its assets under management (AUM) in the GCC to over USD 500 million by 2026, with a sharp focus on Saudi Arabia. The firm credited initiatives like the Riyadh Digital Innovation District (RDID) and The Garage—both spearheaded by the Royal Commission for Riyadh City—for providing a conducive environment for venture debt expansion. Stride has also doubled its regional footprint and is partnering with top banks to increase access to venture debt for next-generation businesses. "Our collaborations with leading banks and local ecosystems will ensure founders get the capital they need to scale, while retaining control of their businesses," Gandhi added.
Zawya
02-06-2025
- Business
- Zawya
Venture debt finds a new home in the Middle East: Stride Ventures doubles down on Saudi Arabia
Saudi Arabia, Riyadh - In a striking signal of the Middle East's rapid financial maturation, Stride Ventures, a leading player in the global venture debt market, has announced significant expansion of its presence across the Gulf Cooperation Council- with Saudi Arabia at the epicentre of its ambitions. The move, which includes doubling its local team and opening a second regional office, is emblematic of a broader shift: the Kingdom is not just attracting capital, but fundamentally redefining the region's approach to startup financing. Stride Ventures' announcement coincides with the publication of the inaugural Global Venture Debt Report 2025, produced by team Stride in partnership with global consultancy Kearney. The report paints a compelling picture: while the global venture debt market has grown at a robust 14% compound annual growth rate (CAGR) over the past five years, the GCC—led by Saudi Arabia—has outpaced this by a factor of nearly four, clocking an extraordinary 54% CAGR. The regional venture debt market reached $500 million in 2024, up from a mere $60 million in 2020, underscoring both the scale and speed of change. Saudi Arabia's Vision 2030, a sweeping reform agenda aimed at diversifying the economy away from hydrocarbons, is at the heart of this transformation. The government's proactive stance is evident in initiatives such as the Jada Fund of Funds (with $1.07 billion in assets under management), and strategic partnerships with global asset managers including Goldman Sachs and Franklin Templeton. Meanwhile, Abu Dhabi's ADGM and Abu Dhabi's Hub71 are providing the regulatory and infrastructural backbone for private credit and venture activity across the region. Traditional banks in the GCC have long been risk-averse, often shying away from lending to early-stage, asset-light startups. Venture debt- a non-dilutive, flexible, and tailored to the needs of high-growth companies- has stepped into this void. The region's fintech and e-commerce champions, such as Tabby and Tamara, have already closed venture debt deals exceeding $100 million each, providing a template for other sectors including logistics, healthtech, and climate tech. Stride's expansion is timed to capture this momentum. The firm has increased its GCC team by over 60% in the past year, with a stated goal of tripling its regional assets under management by 2026. Stride is targeting a half a billion dollar commitment in the region over the next three to five years, while its latest fund has already attracted strong investor interest- on track to be oversubscribed within just a few months. Stride Ventures now boasts an active investment pipeline of up to $110 million across the region, with an average cheque size of $10 million per transaction. This robust pipeline signals both the scale of opportunity and the growing appetite among Middle Eastern founders for strategic, founder-friendly debt capital. Stride's approach- offering sizable and flexible financing to ambitious startups- positions it as a critical enabler of the region's next wave of unicorns. Perhaps most telling is the influx of global talent. Senior executives from Silicon Valley, London, and Singapore are relocating to Riyadh, lured by the region's capital abundance and policy stability. 'Saudi Arabia is shaping the future of venture capital and private credit with intention and scale,' says Fariha Ansari Javed, Partner at Stride Ventures. 'We are seeing a new generation of founders who understand the value of non-dilutive capital to scale responsibly and an equally ambitious set of investors in the region ready to fuel their growth' The implications are profound. The Middle East, long seen as a passive capital provider, is repositioning itself as an active hub for innovation finance. As Fariha puts it: 'Saudi Arabia is moving from being a capital source to becoming a capital magnet. Stride is proud to be part of this next chapter.' The question now is not whether venture debt will take root in the GCC, but rather how quickly it will scale- and how the region's regulatory and institutional frameworks can keep pace with the ambitions of its entrepreneurs and financiers. About Stride Ventures Founded in 2019, Stride Ventures has deployed over $1Billion in venture debt across 180+ companies globally (17 of which are unicorns). With its latest expansion, the firm cements its status as a pioneer in the Middle East's rapidly evolving financial and entrepreneurial landscape. Know more:
