Bridge Financing Cost Equity Sales 
Gust
SEPTEMBER 29, 2011
For a traditional VC financing round structured as a sale of preferred stock, the best resources I can recommend are the Term Sheet Series by Brad Feld and Jason Mendelson and Startup Company Lawyer by Yokum Taku. Others have discussed in detail the pros and cons of convertible debt vs. seed equity rounds. Knowledge is power.
Both Sides of the Table
MAY 23, 2010
a loan) that is later converted to equity at the time of the next financing. If no financing happened then this “note&# may not be converted and thus would be senior to the equity of the company in the case of a bankruptcy or asset sale. It starts as a debt instrument (e.g.
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Up and Running
JUNE 25, 2014
You may be a manufacturer or a distributor and you can buy the products that you sell for pennies on the dollar because one of your suppliers is having a fire sale. The cost: it’s much more profitable for traditional lenders to do a two million dollar loan, or a three million dollar loan than doing a $150,000 loan or $100,000 loan.
K9 Ventures
MARCH 23, 2011
I may be well be in the minority in the Valley to think this way — especially so as a seed stage investor — but I have a strong preference for doing priced equity rounds for funding companies at any stage. Since the financing would likely happen in short order, there was no need to have a valuation cap in the note.
www.copelandfirm.com
OCTOBER 21, 2010
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