2026 State of Private Credit: What Founders Should Know
The private credit market isn’t just growing — it’s reshaping how companies access capital. And for founders navigating a raise in 2026, the implications are significant.
Here’s where things stand: private credit as an asset class has grown to roughly $1.7 trillion, and analysts at Moody’s project it will reach $3 trillion by 2028. Within that, venture debt alone hit a record $62.4 billion in deal value in 2025 — and that’s just one slice of a much broader market that includes revenue-based financing, asset-based lending, structured credit, and more. Non-bank lenders have been the driving force, stepping in aggressively since SVB’s collapse in 2023 to fill the void in startup and growth-stage lending.
At the same time, the cost of equity has never been higher. Median late-stage tech valuations are down roughly 40% from their 2021 peaks. Bootstrapping surged 57% year-over-year in 2025 as founders increasingly chose to self-fund or delay equity raises. The message is clear: founders are looking for alternatives, and the private credit market is answering.
So what does this mean for you as a founder in 2026?
First, there’s more capital available than ever — but it’s also more fragmented. The days of “go talk to three banks” are over. Basel III regulations have constrained bank lending, especially to middle-market businesses. In their place, an entire ecosystem of direct lenders, specialty finance shops, revenue-based financing providers, and structured credit funds has emerged. Each comes with different covenants, pricing, speed, and flexibility.
Second, lender competition is working in your favor. With over $550 billion in private credit dry powder waiting to be deployed, lenders are competing for quality deals. Spreads tightened across the board in Q4 2025, and borrowers with strong fundamentals are seeing more favorable terms than at any point in recent memory. If you’re raising debt in 2026, you have leverage — but only if you know how to use it.
Third, technology is changing the underwriting process. AI-driven lending platforms now power roughly 60% of digital lending decisions, processing applications in minutes rather than days. For founders, this means faster access to capital — but also higher expectations. Lenders using advanced analytics expect clean data, clear metrics, and a well-articulated use of proceeds.
Fourth, the range of businesses that can access private credit today is remarkably broad. SaaS companies with recurring revenue have long been a natural fit — but lenders are now actively funding hardware, manufacturing, defense tech, healthcare, and other asset-rich or revenue-diverse businesses. At Hum, we’ve seen this firsthand through deals like our recent partnership with Luminit, a global leader in light-shaping and holographic optical technologies for Defense, Aerospace, Automotive and Industrial applications. If your business generates revenue or holds tangible assets, there’s likely a lender who wants to talk to you.
The bottom line: 2026 is a borrower’s market — if you come prepared. The founders who win will be those who understand their options, know what they qualify for, and can move decisively when the right terms materialize.
→ Ready to explore your options? Speak to Hum.
