Remove Bridge Financing Remove Burn Rate Remove Management Remove Sales
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Startups and VCs Should Avoid “Pier” Funding

Both Sides of the Table

a loan) that is later converted to equity at the time of the next financing. If no financing happened then this “note&# may not be converted and thus would be senior to the equity of the company in the case of a bankruptcy or asset sale. You’ve kept a really low burn rate and paid yourself a very small salary.

Startup 290
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ProfessorVC: Why I Hate Convertible Debt.Let Me Count the Ways

Professor VC

In cases where it is truly a bridge financing (i.e. Others will attempt fire sales. I take CFO roles in early stage companies and participate on the management team during the early financings and business model development phases. Particularly, now that standard Series Seed docs are commonly used. ► July. (1).