Federico Goudie Discusses Latin American Startups’ Shift to Venture Debt

Foley & Lardner LLP partner Federico Goudie is quoted in the Bloomberg article, “Latin American Startups Turn to Venture Debt With Equity Deals Drying Up,” offering his perspective as venture debt funding assumes a larger role in the Latin American startup scene.

“Startups need cash,” said Goudie. “The sources of funding are drying up.”

He added that on top of high interest payments, some companies are having to accept more burdensome terms and conditions such as minimum return guarantees, make-wholes, and equity kickers to secure funding.