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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. But no doubt their bodies feel the stress.

Startup 290
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ProfessorVC: Why I Hate Convertible Debt.Let Me Count the Ways

Professor VC

This will also serve as a good pointer for all the entrepreneurs who ask why I am not interested in their company led convertible note financing round. Ive seen a number of entrepreneurs, angels and VCs fall into the trap of providing debt in small pieces. In cases where it is truly a bridge financing (i.e.