By Finn Button, Senior Investment Associate at Partners for Growth
The credit landscape is shifting as venture-backed companies increasingly turn toward alternative lenders who offer speed, flexibility, and tailored structures that match the realities of high-growth businesses. The shift is particularly evident in sectors like HealthTech, FinTech, and enterprise SaaS, where capital efficiency and flexible growth capital including alternative debt are top priorities.
Arkos Health, a US-based, fast-growing value-based care provider, represents this trend well. Arkos turned to PFG for a customized credit solution to fuel its rapid expansion. They are among many examples of how non-bank lenders are stepping in to fill financing gaps left by commercial banks.
The Evolving Venture Debt Market: Why Founders Are Looking Beyond Banks
For decades, venture debt from commercial banks has provided a critical bridge between equity raises, helping companies in the US extend runway without excessive dilution. However, recent macroeconomic shifts—including rising interest rates, stricter underwriting, and regulatory constraints—have made it more difficult for tech startups to secure funding from large commercial lenders.
According to PitchBook, non-bank lenders now account for over 70% of venture debt deals as private credit funds and specialty lenders offer an increasingly attractive alternative.
Unlike traditional banks, which often require blanket liens that may not align with a company’s scaling trajectory, specialty lenders provide:
- Structuring Flexibility – Tailored credit solutions that align with revenue cycles, profitability milestones, and capital-light business models.
- Faster Timelines – Reduced approval and deployment times, crucial for companies with aggressive growth strategies.
- Sector-Specific Expertise – Lenders who understand the nuances of scaling in tech-enabled industries
Arkos Health: Scaling Value-Based Care
As a provider of healthcare management solutions, Arkos Health delivers in-home and telehealth services to reduce hospital readmissions and lower costs for insurers. With a year-over-year growth rate of over 200% and a profitable track record over three years, the company was well-positioned for expansion—but needed flexible capital to meet increasing demand.
Rather than pursuing a traditional commercial loan, Arkos partnered with PFG for a $15 million line of credit, designed to:
- Expand in-home healthcare and telehealth capabilities
- Support new payer partnerships for go-to-market expansion
- Enable faster pipeline execution while maintaining strong unit economics
“Scaling at our current pace demanded a financial partner who could work with speed and structuring flexibility. Partners for Growth delivered exactly what we needed, allowing us to quickly execute our growth strategy at a pivotal time when we needed to deploy resources.” – Jerry Williamson, CEO, Arkos Health
As non-bank growth debt continues to gain market share, tech executives are increasingly seeking financing partners who offer more than just capital, but deep industry expertise and flexible structures that fuel long-term growth.
For companies navigating the new normal in debt financing, alternative lending is no longer just an option, it’s a strategic advantage.
