Venturing for yield

The untapped venture debt opportunity

The search for yield continues. The prevailing low-interest rate environment has driven down banks’ profit margins on traditional assets, compounded by increased competition from disruptive lending entrants. As the effects of COVID-19 put pressure on traditional corporate and consumer lending, financial institutions are being forced back to the drawing board to identify new sources of return.

At the same time, banks are investing in external innovation engagement models — from seeding startups through…