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Startups and VCs Should Avoid “Pier” Funding

Both Sides of the Table

The industry jargon for convertible debt is a “bridge loan&# or “bridge financing.&# It’s called a bridge loan because it’s meant to provide enough capital to bridge you from your last round of funding until your next round of funding.

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ProfessorVC: Why I Hate Convertible Debt.Let Me Count the Ways

Professor VC

In cases where it is truly a bridge financing (i.e. From my experience, negotiating debt deals with an experienced investor will result in a number of the same terms and wont save much (if anything) on legal fees. Particularly, now that standard Series Seed docs are commonly used. So when does convertible debt make sense?