re:cap compared to venture debt

Venture debt is usually sized against your most recent equity round, so it works best for venture-backed companies. It often carries warrants, takes a broad security package across your assets, and sometimes comes with board observer rights. Capital is rarely disbursed in full up front: later tranches depend on hitting milestones, and you may end up drawing money you no longer need.

re:cap sizes against the business itself rather than against a round, and does not require venture backing. Companies that have never raised equity are financed regularly. re:cap takes no equity, no warrants and no board seats of its own, and security is typically limited to a pledge on receivables.

re:cap also arranges from several capital providers rather than lending its own money, so you can see more than one offer.