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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. Maybe the market views this as not worth the price you paid?

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. Labels: convertible debt , seed financing , series seed. 3 comments: Marketing Services. Particularly, now that standard Series Seed docs are commonly used. So when does convertible debt make sense? Some will just shut down.