Investor Ravi Chachra Unveils $75M VC Debt Market for Startups

8vdX, a venture capital debt marketplace for startups, was created by Ravi Chachra and Vijay Lavahle with a plan to disburse $75 million over the next year to startups. 8vdX is essential for Y-Combinator’s (YC) Winter 2022 batch which offers venture capital debt helping founders minimize dilution across sectors and geographies. Over the past 90 days, the scene has offered $2.8 million in debt to 16 startups, including two from India, the second-largest country in the current YC lot, after the United States.

8vdX aims to be a preferred debt partner for these startups as they scale and scale their future fundraising at higher valuations after startups exit YC.

All Indian startups are required to ‘switch’ to an approved country in order to receive YC funding, and 8vdX was created to help these companies continue to grow by providing capital as soon as they are accepted on Y-Combinator.

“We launched 8vdX with the goal of providing venture capital debt to startups across all industries and geographies. In just three months, we have $5 million in assets under management and we’re growing over 25% a week. 8vdX’s goal is to have an AUM of over $75 million over the next 12 months. We are seeing strong interest from investors. We have 30 investors who have invested through our marketplace and there is a waiting list to invest in the next batch,” said Ravi Chachra, co-founder of 8vdX.

8vdX venture capital debt comes with equity kickers. The company expects principal amounts to be repaid within short timeframes and equity kickers to generate upside over longer time horizons. This provides investors with a combination of debt-like downside and equity-like upside protection. The company begins by focusing on the YC ecosystem.

“We have strong interest from institutional investors who want exposure to the debt of high-growth technology companies,” he added.

Summary of news:

  • Investor Ravi Chachra Unveils $75M VC Debt Market for Startups
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Tana T. Thorsen