In a recent article for Termgrid, Thompson Coburn partner Jennifer Post examined how the rapid shift of venture debt toward artificial intelligence is reshaping the broader lending landscape.
Jennifer highlighted that more than half of venture debt capital is now chasing AI deals, putting pressure on traditional SaaS and software borrowers. These companies are increasingly seeking covenant relief, payment extensions, and other accommodations as they struggle to compete.
She added that many of the most stressed companies were funded 18 to 36 months ago and are now unable to achieve prior valuations, though stakeholders are often reluctant to accept these lower valuations.
Read the full article here.
