Remove Bridge Financing Remove Burn Rate Remove Finance Remove Partner
article thumbnail

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. a loan) that is later converted to equity at the time of the next financing. You’ve kept a really low burn rate and paid yourself a very small salary.

Startup 290
article thumbnail

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

Professor VC

My partner in Menlo Incubator , Gary Kremen , and I had a recent debate on which one of us hates convertible debt more. 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.