Venture debt becomes central financing option for late-stage European biotech

BioSpace’s Denatured podcast recently featured Jennifer McMahon of Seroba and Joey Mason of Claret Capital discussing the growing role of venture debt in European biotech.

The guests explained that venture debt provides companies with cash when equity markets are tight, allowing them to extend runway without diluting shareholders.

They noted that Europe’s funding gaps, the practice of issuing financing in tranches, and a slower pace of capital deployment shape which firms can access and benefit from this type of financing.

According to the discussion, venture debt is now positioned at the heart of late-stage biotech financing in Europe, making time a critical asset for companies navigating capital constraints.