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Arif Bhalwani, CEO of Third Eye Capital, on the ‘Golden Age’ of the Private Credit Market

The Startup Magazine

Private credit has proven resilient through the recent cycle of rising rates, and the ability to structure deals with covenants, collateral, and tailored repayment terms provides a level of protection and potential for value creation, making it a compelling option for investors.

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What are the costs of taking investor money?

Berkonomics

The combination of restrictive covenants in the investor documents and the new dynamic of board members with an agenda make for a change in the culture of the corporation, certainly one for the CEO.

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Take only “smart money” investments

Berkonomics

We have previously made the case that professional investors demand more in the form of restrictive covenants and lower valuations. This statement could be considered controversial. Now we explore the other side of that coin.

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Launchpad LA – More Details Revealed

Both Sides of the Table

He had a pile of debt and covenants that made him vulnerable if the debt holders wanted to play rough. It was inspired somewhat by a comment that Matt Coffin (founder of LowerMyBills) made at a technology event hosted by Jason Nazar.

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What if you see juicy competitor information?

Berkonomics

And none of this is especially considered a trade secret, violating the unspoken covenant between competitor CEOs that there is a limit to such exchanges.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Typically promissory note or non-voting common stock, with covenants. Hard covenants with potentially strict penalties. . However, some investors are using these tools in earlier, higher-risk companies. Profitable or backed by large VC fund. Governance. Board seat, typically retained until company exit. Cash collateral.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Many venture debt lines have “covenants” that restrict you from going below a certain amount of cash in the bank (in normal times they are more common – in better times they are less common). And you risk “trading while insolvent” which has legal implications.

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