Part 2 - Using Venture Debt as a Strategic Advantage [Daniel Simon & Erik Schreter]

In Part 2 of this two-part interview, Daniel Simon, founder and CEO of Coast, takes a deep dive into the strategic use of venture debt as a complement to equity fundraising. He explains the key differences between senior and subordinated debt, outlines when and how to raise debt, and offers practical guidance on negotiating favorable terms. Daniel shares his approach to building long-term relationships with lenders, structuring debt to extend runway without compromising flexibility, and managing board dynamics when equity investors express resistance. This episode is packed with tactical advice for founders looking to preserve ownership, reduce dilution, and build a resilient capital structure while scaling their businesses.