Both Sides of the Table

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Bad Notes on Venture Capital

Both Sides of the Table

On the phone … Me: So, you raised venture capital? Convertible notes were previously used primarily for “inside rounds” in which the existing investors provide you with bridge financing to get to the next round. We raised a seed round. About $1 million. Me: At what price? Him: It wasn’t priced.

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On Funding?—?Shots on Goal

Both Sides of the Table

We’ve had two companies where we had to bridge finance them several times before they eventually IPO’d We had a portfolio company turn-down a $350 million acquisition because they wanted at least $400 million. Early-stage venture capital is about extreme winners. It sold to Amazon for > $1 billion.

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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. Tags: Entrepreneur Advice Raising Venture Capital Start-up Advice Startup Advice. But piers are often counter productive.

Burn Rate 290
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This Week in VC Episode 6 with @Jason Calacanis: Best One Yet

Both Sides of the Table

Next Wednesday we’ll have Dana Settle of Greycroft Partners, a New York / LA early-stage venture capital fund. Often times when companies raise “bridgefinancing (this is money from internal investors. We spoke briefly about why. Short answer: no.

Stealth 285