Berkonomics

JULY 16, 2020

Venture or angel-financed companies with plenty of working capital sometimes are immune to this working capital need for some time into their growth, but at some point, it will become clear that the cheapest form of finance is not equity in a growing enterprise. It may not be equity. Read the loan covenants carefully.

Covenant 62

Covenant Dilution Warrant Intellectual Property 62

Berkonomics

AUGUST 21, 2013

Venture or angel-financed companies with plenty of working capital sometimes are immune to this need for some time into their growth, but at some point it will become clear that the cheapest form of finance is not equity in a growing enterprise.

Covenant 61

Covenant Warrant Dilution Intellectual Property 61

Both Sides of the Table

APRIL 25, 2011

It would not be a big stretch to image a well run service business like this making 15-25% net profit margins. Angel financing – just because VCs won’t back this kind of business doesn’t mean angels won’t. That is $12 million in profits over 3 years.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

Gust

OCTOBER 26, 2011

In most VC and angel financing transactions, there are three pieces to this puzzle: (1) the Company requires investors to make certain representations in the purchase agreement (e.g.,

Finance 79

Finance Term Sheet Covenant Accredited Investor 79