Bridge Financing Finance Sales Valuation 
Gust
SEPTEMBER 29, 2011
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. A term sheet for a convertible note deal may run two or three pages, versus 8-10 pages for a typical Series A Preferred Stock financing.
Professor VC
APRIL 7, 2011
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. In a convertible note structure, Im penalized for increasing your valuation. Is This a Bridge or a Pier? In cases where it is truly a bridge financing (i.e.
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K9 Ventures
MARCH 23, 2011
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.
Both Sides of the Table
MAY 23, 2010
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 Company Lawyer
JANUARY 11, 2010
I seem to be doing a lot of pre-Series A convertible bridge note financings these days. 50%) or warrant coverage are typically more company-favorable than a Series A financing where a valuation is set. premoney valuation, then the investor would own 10% of the company. Assume the angel investor invests $500K.
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