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Knowledge Is Power: Convertible Note Financing Terms, Part I

Gust

It should therefore come as no surprise that an asymmetry of information exists, mostly gleaned from experience, between founders and investors in a venture financing deal. The first is that they are the easiest deals to bang out quickly and cost-effectively, keeping the amount of legal work and negotiation on both sides to a minimum.

Finance 178
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Revenue-Based Investing: A New Option for Founders who Care About Control

David Teten

Does the traditional VC financing model make sense for all companies? 2018 also had the fewest number of angel-led financing rounds since before 2010. John Borchers, Co-founder and Managing Partner of Decathlon Capital, claims to be the largest revenue-based financing investor in the US. Absolutely not.

Revenue 60
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Bad Notes on Venture Capital

Both Sides of the Table

It’s like we need a finance 101 course for entrepreneurs. In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round. There are a million ways to do quick, easy, low-cost rounds with prices. There were no metrics. Truthfully.

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Startups and VCs Should Avoid “Pier” Funding

Both Sides of the Table

Often when startups who have raised venture capital need another round of financing they will turn to their existing investors to give them money before raising from outsiders. a loan) that is later converted to equity at the time of the next financing. It starts as a debt instrument (e.g.

Startup 290
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The Basics of Small Business Loans [WEBINAR]

Up and Running

Hopefully I’ll be able to add some value with some of the financing needs that your businesses may need. Then we look at what the small business financing needs. “How do I tackle my financing needs as a startup?” I think there is a process where you can participate via Twitter, or ask questions. Scott: Okay.

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Bad Notes on VC

Gust

It’s like we need a finance 101 course for entrepreneurs. In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round. There are a million ways to do quick, easy, low-cost rounds with prices. I really just want to champion Finance 101 to entrepreneurs.

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Thoughts on Convertible Notes

K9 Ventures

The convertible note was really intended as an instrument for a “bridge financing” – when an equity round was imminent, and likely to occur, but the company needed some money in between. In that case, it made good sense to have a debt instrument, where the note holder then converted into equity when the financing occurred.