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Knowledge Is Power: Convertible Note Financing Terms, Part I

Gust

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. See my blogroll for links to many of the best resources.)

Finance 178
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ProfessorVC: Why I Hate Convertible Debt.Let Me Count the Ways

Professor VC

We werent able to declare a winner, but I did agree to write a blog post on the topic. 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 cases where it is truly a bridge financing (i.e. Blog Archive. Newer Post.

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

Both Sides of the Table

Often times when companies raise “bridgefinancing (this is money from internal investors. I first discovered it from Dharmesh Shah’s blog OnStartups. We spoke briefly about why. When you see a big round that is announced, does it mean that they really raised all this money? Short answer: no.

Stealth 285
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Thoughts on Convertible Notes

K9 Ventures

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.

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The Option Pool Shuffle

venturehacks.com

Given that many companies are doing convertible note bridge financings as their seed round, this seems to come up relatively often. Cheers, Venugopal Vengo Ventures Reply Trackback responses to this post dispatches from TJICistan » Blog Archive » how much stock do you give to key personnel ? - Thanks in advance.