How we are different

	Bank/Traditional NBFCs		Venture Capital	Venture Debt Providers
Cost	Low-interest rate but considering cost of cash margins, cost of mortgage collateral and time spent, it is often costly.	No loss of control or equity dilution	Requires 20-40% equity stake and board seat.	Takes warrants or options to invest at a discount
Flexibility	Fixed product and inflexible repayment schedule. Restricted product type on offer.	Customizable repayment schedule and product structures.	Provides a large amount of funding without a strict repayment schedule.	Provides a large amount of funding tied to an equity investment
Product Variations	Limited.	All types of debt from revolving limits to quasi-equity.	Equity or equity-like	Only Venture Debt
Profitability Criteria	Does not lend without three year profitability	Profitability not required for venture-backed companies.	Comfortable funding loss-making ventures	Funds only venture-backed companies.
Collateral security	Requires mortgage collateral many startups can not provide	Does not require mortgage collateral.	Takes partial ownership control of the company	Does not require mortgage collateral but take a small equity share.
Further funding	Follow on rounds unpredictable.	Enhancement of limits and follow on funding available after 6 months of the first loan and satisfactory performance.	Follow on rounds possible depending upon equity investors.	Follow on rounds possible but tied to equity fundraise.
Time to fundraise	3-6months	1-2 months	6-9months

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