Venture Lending & Leasing

Contact: George Siguler

Management: Joint Venture between Siguler Guff Advisers and Western Technology Investments. Siguler Guff was a co-adviser to the first three Venture Lending & Leasing funds. Starting with Venture Lending & Leasing IV, Siguler Guff's role transitioned to that of a special limited partner.

The Venture Lending & Leasing funds were organized to provide asset backed financing to carefully selected venture-capital backed companies, in the form of secured loans and equipment leases, in exchange for current coupon payments and equity warrants. Loans to each company range from $1 million to $25 million, with warrant coverage of 7% to 12% of the loan amount. Since VLLI needs to be paid in full before the equity venture capitalist realizes a return, the subordinated equity provides an important layer of security.

Venture Lending & Leasing provides an alternative, carefully structured layer of financing that complements venture capital equity. Such financing is attractive to the venture capital investor, as it reduces the need to increase the amount of capital at risk in the company and increases potential return if the company succeeds.