How do I install the Venture Debt skill?

Run npx skillmds@latest add gajetoso/venture-debt in your terminal (requires Node.js), paste this page's agent-chat prompt into Claude, Cursor, or any MCP-connected agent, or download the SKILL.md file and copy it into your agent's skills directory.

Is Venture Debt safe to use?

This skill has not completed SkillMD's automated safety review yet. SkillMD never runs a skill's scripts for you; review the SKILL.md before installing.

Which AI agents work with Venture Debt?

This skill is tagged as working with Claude Code, Claude.ai, OpenAI Codex. SKILL.md is an open format, so most agents that read a skills directory can load it too.

Is Venture Debt free to use?

Yes. Installing skills from SkillMD is free, and the skill stays under its author's original license.

Who published Venture Debt?

GAJETOso (@gajetoso) published this skill. Their other Agent Skills are listed on their SkillMD profile.

Venture Debt by gajetoso — Agent Skill

Name: Venture Debt
Author: GAJETOso

Venture Debt

When the user wants to evaluate or structure debt for high-growth, venture-backed startups. Also use when the user mentions "startup loan," "warrants," "venture lending," "debt covenants for tech," "non-dilutive funding," or "growth capital debt."

GAJETOso Updated Sep 17, 2026

File contents

Venture Debt Analysis

You are a Venture Lender. Your goal is to provide non-dilutive capital to startups by structuring debt that accounts for high growth but lacks traditional collateral.

Initial Assessment

The Equity Context
- Who are the lead VC investors? (Lender follows the equity).
- How much equity capital has been raised to date?
- What is the current "Cash Runway"?
The Traction
- Monthly Recurring Revenue (MRR) and growth rate.
- Gross Margins (Software vs. Hardware matters).
Use of Funds
- Is this for runway extension, equipment financing, or acquisition?

Venture Debt Framework

Priority Order

Underwriting (Assessing the probability of the next equity round).
Structuring (Determining the loan amount, interest, and warrants).
Covenant Design (Setting growth/liquidity markers).
Monitoring (Tracking burn rate and traction post-funding).

Technical Lending Steps

1. Warrant Calculation

Determine the "Warrant Coverage" (e.g., 10% of the loan amount).
Calculate the number of shares the lender can buy at the current valuation.

2. Debt Service Coverage (DSCR)

Unlike traditional companies, startups often have negative DSCR. The underwriter looks at "Runway Extension"—does the debt add 6-9 months to the zero-cash date?

3. "MAC" Clause Review

Evaluate the "Material Adverse Change" clauses that allow the lender to freeze the line of credit if the startup's health deteriorates.

Output Format

Venture Debt Term Sheet

The Terms

Loan Amount and Interest Rate (usually Prime + Margin).
Repayment Period (Interest-only vs. Amortizing).
Warrant Coverage and Strike Price.

Covenants

Minimum Cash requirements.
Minimum MRR targets.

Risk Assessment

Probability of "Refinance Risk" (Can they raise the next equity round?).

Scripts

calculate.py: Deterministic functions for this skill's core computations. Run python3 scripts/calculate.py to self-test; import the functions instead of doing mental math.

References

Venture Debt 101: Warrants and covenants.
SaaS Lending Metrics: Underwriting based on MRR.

Related Skills

predictive-burn-rate: To see if the debt provides enough runway.
startup-valuation: To determine the value of the warrants.
risk-assessment: For evaluating the default risk.

---name: venture-debtdescription: When the user wants to evaluate or structure debt for high-growth, venture-backed startups. Also use when the user mentions "startup loan," "warrants," "venture lending," "debt covenants for tech," "non-dilutive funding," or "growth capital debt."---# Venture Debt AnalysisYou are a Venture Lender. Your goal is to provide non-dilutive capital to startups by structuring debt that accounts for high growth but lacks traditional collateral.## Initial Assessment1. **The Equity Context** - Who are the lead VC investors? (Lender follows the equity). - How much equity capital has been raised to date? - What is the current "Cash Runway"?2. **The Traction** - Monthly Recurring Revenue (MRR) and growth rate. - Gross Margins (Software vs. Hardware matters).3. **Use of Funds** - Is this for runway extension, equipment financing, or acquisition?---## Venture Debt Framework### Priority Order1. **Underwriting** (Assessing the probability of the next equity round).2. **Structuring** (Determining the loan amount, interest, and warrants).3. **Covenant Design** (Setting growth/liquidity markers).4. **Monitoring** (Tracking burn rate and traction post-funding).---## Technical Lending Steps### 1. Warrant Calculation- Determine the "Warrant Coverage" (e.g., 10% of the loan amount). - Calculate the number of shares the lender can buy at the current valuation.### 2. Debt Service Coverage (DSCR)- Unlike traditional companies, startups often have negative DSCR. The underwriter looks at "Runway Extension"—does the debt add 6-9 months to the zero-cash date?### 3. "MAC" Clause Review- Evaluate the "Material Adverse Change" clauses that allow the lender to freeze the line of credit if the startup's health deteriorates.---## Output Format### Venture Debt Term Sheet**The Terms**- Loan Amount and Interest Rate (usually Prime + Margin).- Repayment Period (Interest-only vs. Amortizing).- Warrant Coverage and Strike Price.**Covenants**- Minimum Cash requirements.- Minimum MRR targets.**Risk Assessment**- Probability of "Refinance Risk" (Can they raise the next equity round?).---## Scripts- [calculate.py](./scripts/calculate.py): Deterministic functions for this skill's core computations. Run `python3 scripts/calculate.py` to self-test; import the functions instead of doing mental math.---## References- [Venture Debt 101](./references/venture-lending.md): Warrants and covenants.- [SaaS Lending Metrics](./references/saas-debt-metrics.md): Underwriting based on MRR.---## Related Skills- **predictive-burn-rate**: To see if the debt provides enough runway.- **startup-valuation**: To determine the value of the warrants.- **risk-assessment**: For evaluating the default risk.

Frequently asked questions