Growth Credit

Seems like a venture debt deal (look up TriplePoint or SVB). Business is likely valued off some revenue multiple rather than EBITDA. Covenants will likely also be based off some revenue multiple as well (e.g. max leverage < 2x revenue). Interest probably will be all or partially PIK, with equity warrants attached. Most likely will be little or no principal repayment at all, and the loan will either be refinanced or paid off with proceeds from the next VC round or an IPO.

Not familiar with this specific company, but they likely chose to raise debt over equity due to depressed equity valuations right now, especially in tech. They don't want to risk raising money at a subpar or lower equity valuation in their next VC round, so management turned to the debt market for capital instead and will wait to raise equity once the market turns around.

This is not venture debt - it’s growth credit. There’s no VC in the background and so not relationship lending. Centerbridge, some other hfs, private credit and growth shops play in the space