Yes. Early-stage investments are often based on the promise of a disruptive idea or new technology and the investors understand that there are significant execution risks involved in realizing that vision. As a result, early-stage investors are slightly more accustomed to supporting their portfolio companies through “inside rounds” when execution does not occur exactly as planned, or key milestones require more time than anticipated. Later-stage investments are premised more on the growth and product development record of the company. When execution falters, it can adversely impact the company’s ability to attract new investors, and the existing syndicate may struggle to adapt to the valuation pressure or increased need for capital that results from the loss of momentum. Thus, venture debt for later-stage companies typically has more stringent revenue or performance covenants and loan availability is tranched to performance or fundraising milestones.