Ze-Gen Arranges $2.5 Million in Venture Debt
Boston-based waste gasification startup Ze-Gen, which we profiled in August, has closed on $2.5 million in “venture debt” from Palo Alto, CA-based Pinnacle Ventures, the company said today. What’s venture debt? We wondered too, so we asked John Harper, Ze-Gen’s vice president of finance. “It is essentially a corporate loan,” Harper says. “Often, as in our case, the borrowers may be pre-revenue. Such loans often have some sort of equity upside feature to compensate for the incremental risk.” Venture debt is one of Pinnacle’s specialties.