Mezzanine financing is temporary financing needed to keep the venture afloat until the next offering.

Question

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Mezzanine financing is a hybrid form of capital that is typically used to finance the expansion of existing companies rather than to keep a venture afloat. It is often a mix of debt and equity financing and is used as a way to fund acquisitions, growth, or to prepare a company for an IPO, rather than as a temporary measure to prevent failure.

Mezzanine Financing Is Temporary Financing Needed to Keep the Venture