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 Bridge Financing + Equity
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14 articles |
| Page 1 of 1 | Previous | Next | VC READY BLOG NOVEMBER 13, 2009 Advantages of Convertible Debt in Seed Financing Convertible debt is pretty much what it sounds like: debt that can convert to equity. convertible debt financing is similar to a traditional loan in that the company borrows money (often from angel investors, but sometimes from friends and family or even VCs) and commits to repay it with interest by the end of the term of the loan. | VC READY BLOG NOVEMBER 13, 2009 Advantages of Convertible Debt in Seed Financing Convertible debt is pretty much what it sounds like: debt that can convert to equity. convertible debt financing is similar to a traditional loan in that the company borrows money (often from angel investors, but sometimes from friends and family or even VCs) and commits to repay it with interest by the end of the term of the loan. | | | | | |
| VC READY BLOG NOVEMBER 13, 2009 Advantages of Convertible Debt in Seed Financing Convertible debt is pretty much what it sounds like: debt that can convert to equity. convertible debt financing is similar to a traditional loan in that the company borrows money (often from angel investors, but sometimes from friends and family or even VCs) and commits to repay it with interest by the end of the term of the loan. | WILL PRICE JUNE 27, 2005 The Cost of Optimism The insiders and management are then faced with the dreaded prospect of a down round or a bridge financing to tide the company through to meeting its original plan. The Economist recently ran a wonderful piece on the sorry state of project management. passenger or car traffic) were overly aggressive by an average of 106%. | ASK THE VC OCTOBER 6, 2011 Convertible Debt – Early Versus Late Stage Dynamics Traditionally, convertible debt was issued by mid to late stage startups that needed a financing to get them to a place where they believed they could raise more money. Thus, these deals were called “bridge financings.”. Some of these bridge loans also contained terms like pay to play. | VENTURE CHRONICLES NOVEMBER 22, 2010 SEC Defines Venture Capital Only invests in equity securities of private operating companies to provide primarily operating or business expansion capital (not to buy out other investors), U.S. Here’s what would, according to this definition, be illegal for a venture capital fund to undertake: Private investment in public entity (PIPE) financing. | | | | | | | |
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THE STARTUP LAWYER | FRIDAY, FEBRUARY 4, 2011 How to Evaluate an Offer from a Startup Incubator
If an incubator offers your startup $25,000 in exchange for 6% equity, the pre-money valuation is a whopping $391,667. Rather than assign a monetary value to the intangibles, a startup should instead assign an equity percentage value to intangibles like mentorship. Great news — your startup just got accepted to an incubator! MORE >> -
FRED DESTIN | SUNDAY, OCTOBER 4, 2009  Is Europe going to emasculate venture with misguided regulation ?
He echoes the "locusts" comments and the general distaste for private equity and hedge funds found in the press. Imagine you are a small startup from the south of France posing a threat to IBM on one of its product lines but currently bridge financed by your investors. through regulation !) What's wrong with this picture ? MORE >> -
VENTUREHACKS.COM | THURSDAY, OCTOBER 21, 2010  The Option Pool Shuffle
Reading on, the term sheet states, “The $8 million pre-money valuation includes an option pool equal to 20% of the post- financing fully diluted capitalization.&# That does work if the company gets sold before another round of financing. This can be done on any financing or M&A event. Don’t lose this game. Thanks! MORE >> -
BOTH SIDES OF THE TABLE | SATURDAY, MAY 15, 2010  This Week in VC Episode 6 with @Jason Calacanis: Best One Yet
Clearly a startup should consult its lawyer before filing or not filing.But the attorneys I relied on to write this piece told me that they’ve done lots of Section 4(2) deals in the past, and would recommend it to clients who had relatively simple financing agreements (not tranched-out, not too many investors, etc.) But it does happen. MORE >> -
BOTH SIDES OF THE TABLE | SUNDAY, MAY 23, 2010  Startups and VCs Should Avoid “Pier” Funding
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. loan) that is later converted to equity at the time of the next financing. But I used to jokingly refer to bridge loans as “pier&# loans. MORE >>
- Founders Shares: How do you split them up? WWW.COPELANDFIRM.COM | THURSDAY, OCTOBER 21, 2010
- Update on Carried Interest Legislation RECENT BUZZES - VC EXPERTS, INC. | MONDAY, JANUARY 31, 2011
- The High Cost of Optimism WILL PRICE | FRIDAY, AUGUST 25, 2006
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