Overlap Holdings

🚀 How does venture capital fund the future? On this fascinating episode of StuffTV, Overlap Founder and CEO Justin Stevens chats with Nick Huzar about why investing in early-stage frontier technologies can be a powerful force for solving society's biggest problems. Among the insights from their conversation: ⚖ How much venture investment flows to companies creating "incremental" changes vs. true innovation ✅ How VCs "validate" a technically complex deal 👩🔬 Which frontier technologies Overlap is particularly excited about (hint: think carbon as a feedstock) As Justin says: "Technology has been such a democratizing force over time...It's so important to me that these precious dollars, mindshare, and talent that we allocate toward discovery and the future are allocated appropriately." Watch the episode here: https://lnkd.in/eCkiWdtN #deeptech #vc #podcast 

Dear frontier tech startup founders and VCs: We wrote this post for you.

Welcome to our Overlap 101 video series—quick and digestible primers on topics that are well-known but less understood across tech and finance. First up: let’s talk about debt! For many Americans, debt can have a negative connotation from experiences in their personal lives (for example, student loans or credit cards). But debt can also be an important tool for a company to efficiently manage its growth—as long as it has the means to pay it back. Here’s what to know: ⚖ The essential relationship between debt and equity is one of risk and return. Debt holders do not share in the increase in value of a company or asset, but they are the first to get paid back if things go south. 📈 Debt can be a highly effective way to finance the growth of a business if the earnings of the business continue to grow in line with the debt you’re taking on—which usually happens if you’re buying additional assets and capital that allow you to expand your operations. 💵 If a business has a more complicated capital structure with multiple pieces of debt, these debt lenders must negotiate among themselves who gets paid in what order—and who gets first priority if things go bad. Debt holders seek to ensure they’re paid correctly for the kind of risk they’re taking: A bank might charge a lower interest rate for the ability to get paid back first, while a second lien lender would come in behind the bank but would likely charge a higher interest rate to do so. ⏰ For a speed round on multiple kinds of corporate debt structures—everything from bank loans and bonds to trade finance and asset-backed securitization—check out our video at the 21.45 mark. Optimizing a capital structure with the right kind of debt can sometimes make a difference between a company succeeding or going bankrupt. Stay tuned for more of our Overlap 101 videos—and let us know if there are any other topics from finance or frontier tech that we should dive into next. https://lnkd.in/ec3F_MsD #vc #startups #deeptech #finance