By Walter Denmon

Ben & Jerry's claims its parent company unlawfully fired CEO David Stever over his social and political activism, violating its merger agreement.

The Vermont-based ice-cream maker, known for its social activism, said in court documents filed in New York on Tuesday that Unilever informed its board it was replacing Stever for "his commitment to Ben & Jerry’s Social Mission and Essential Brand Integrity and his willingness to collaborate in good faith with the Independent Board, rather than any genuine concerns regarding his performance history."

The company stated the move highlighted "Unilever’s failure to adhere to its contractual obligations" under the merger agreement made when Unilever acquired the ice-cream maker in 2000 for $326 million. It specified the CEO could only be removed after consulting with the board’s advisory committee.

"Unilever announced their decision before the committee had even been appointed and attempted to force the Independent Board into rubberstamping the decision by unilaterally dictating artificial and hasty deadlines," the court documents stated.

Ben and Jerry's said the merger agreement also "protects the Social Mission and Brand Integrity of Ben & Jerry’s, positions the Independent Board as the "custodians" of the same, and obligates Unilever to work with the Independent Board in good faith."

However, the company argued that Unilever "repeatedly failed to recognize and respect the Independent Board’s primary responsibility over Ben & Jerry’s Social Mission and Brand Integrity, including threatening Ben & Jerry’s personnel should the company speak out regarding issues which that Unilever prefers to censor."

Since its founding in 1978, Ben & Jerry's has been known for its left-leaning advocacy, and the Vermont-based ice-cream maker was able to maintain an independent board of directors to continue its progressive activism even after it sold to Unilever in 2000.

But in recent years, the unique structure of the deal that allowed Ben & Jerry's to wade into controversial issues without interference has pulled Unilever into the fray, too.

The biggest lightning rod began in July 2021, when Ben & Jerry’s announced it would no longer sell its products to Israelis in the West Bank, which the company refers to as "Occupied Palestinian Territory."

In 2023, Ben & Jerry's said Unilever announced that it had sold Ben & Jerry’s intellectual property in Israel and the Occupied Palestinian Territory to a distributor who would continue sales in the settlements – a move the ice-cream maker claimed breached its merger agreement.

In March 2024, Unilever, the owner of some 400 brands, announced plans to spin off its ice-cream business — including Ben & Jerry's — after more than a century.

Ben & Jerry's said in court documents Tuesday that Unilever "failed to engage with the Independent Board in good faith regarding how the restructuring will preserve the rights, duties, and obligations specified in the parties’ agreements, including Ben & Jerry’s Social Mission and Brand Integrity and the Independent Board’s authority over the same."

By Flint Jurgens

The U.S. venture debt market hit record highs in 2024 as the country’s overall venture capital market has continued to drop over the past two years.

Kristine Erwin, director of venture and growth finance at U.K. bank NatWest, highlighted how venture debt, which is historically mainly found in the U.S., is also set to grow across Europe.

U.S. Venture Debt Grows as Venture Capital Falls

According to Silicon Valley Bank research , the total volume of U.S. venture debt deals has grown by 17% annually since 2014.

In 2024, venture lending value hit a new record of $46 billion as deal sizes increased and more founders moved away from classic VC investment.

Over the past two years, VC investment in the U.S. decreased 47%.

Low interest rates during 2020 and 2021 allowed growing companies to complete VC rounds and other equity funding at exceptionally high valuations.

Since 2021, the average valuation of late-stage tech companies has decreased by 40%, meaning founders are obliged to give away more of their company for capital.

This has led to the steady growth of venture debt within the U.S. and beyond, allowing founders to extend the company’s cash runway without diluting ownership.

Throughout 2022 and 2023, U.S. venture lending deal volume experienced a slight downturn compared to its 2021 peak of 2089.

This mirrored overall VC funding, as global economic uncertainty and diminished investor confidence dampened enthusiasm for new investments.

However, the annual value of venture debt has remained steadily growing. As debt funders do not make debt deals public, actual debt funding figures will likely be larger.

Venture Debt Expected To Increase Across U.K. and Europe

Kristine Erwin, director of venture and growth finance at NatWest, has claimed that venture debt use could increase in the U.K. and Europe.

“Investors here are becoming more and more familiar with venture debt; the founders are becoming more familiar with venture debt,” Erwin said in an interview with Fintech Futures.

Erwin said that founders are becoming more aware of when to use debt and when not to use it.

“And what’s important is a symbiotic relationship between equity investors and debt lenders, and I think that in the past few years, that’s really come to fruition,” Erwin said.

“And what we’re going to see now is a period of hopefully rapid growth for the venture debt market,” he added.

According to the State of European Tech 2024 report , European startups raised over $4.6 billion in venture debt in the first three quarters of 2024.

This made up a record total of 14% of the overall share of VC funding.

According to Erwin, the best stage for utilizing venture debt is when companies have established themselves and are ready to invest in growth.

“Venture debt is most appropriate for companies that are scaling. So we’re not talking about super early stage companies who are still building their product,” Erwin said.

Erwin believes venture debt should be for companies that have VC backing already with a proven playbook, who are now ready to “invest in continued growth.”

“If it’s a time where you’re pivoting your strategy, perhaps rebuilding your product for some reason, you’re still trying to grow and scale and establish yourself, that’s maybe a time to think about equity,” Erwin said.

European Companies Taking Risks With Convertible Debt

As well as venture debt, more complex debt deals are increasing within Europe’s VC-backed companies, leading to increased risk, according to Reuters .

Convertible debt, or structured debt, is a type of deal that turns into equity after a select amount of time, allowing companies to raise funds without publishing an updated valuation.

However, these deals come with risks of companies losing control if not used correctly.

Ali Niknam, CEO of Dutch digital bank Bunq, told Reuters that “structured debt can be a Trojan horse.”

“If for whatever reason you don’t make it, and it gets converted, sometimes people lose control,” he added.

According to Dealroom data cited by Reuters, convertible debt among European companies hit a record $2.5 billion in 2023, up from $1.7 billion in 2022.