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This Week in VC: Michael Montgomery (President, Montgomery & Co.)

Both Sides of the Table

This process is normally known as doing a “private placement&# and we agreed that in most cases you don’t want an i-bank involved in raising your first round of capital. How to investment banks help with the M&A (mergers & acquisitions) process? Should you use investment banks to raise venture capital?

IPO 242
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Convertible Note Seed Financings: Founders Beware!

Scott Edward Walker

In other words, in the event of the startup’s “acquisition” (which is often broadly defined to include a merger, change of control or sale of substantially all its assets), the maturity date of the note would be accelerated, and the amount of the loan, plus interest, would become due at the closing of the acquisition.

Finance 64