Structured Equity vs. Term Loan Financing: A Practical Guide

Having worked on both SingleStore's growth buyout and Sonar's term loan financing, I've seen firsthand how capital structure decisions can make or break value creation.

The Landscape

Late-stage companies have more financing options than ever:

When to Use Each

**Term Loans** (like Ping Identity's TLB refinancing):

**Structured Equity** (like Scale Computing's merger):

The Devil's in the Details

Critical terms to negotiate:

Real-World Example

On the Scale Computing deal, we modeled multiple scenarios showing how structured equity actually minimized founder dilution vs. a traditional equity round, despite the warrant coverage. The key was negotiating a favorable strike price tied to the next round.

Understanding these instruments is crucial for anyone in growth-stage tech finance.