Startups and VCs Should Avoid “Pier” Funding
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. You might have legitimate concerns that warrant not funding the ongoing operations.
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