Both Sides of the Table

JUNE 27, 2021

We’ve had two companies where we had to bridge finance them several times before they eventually IPO’d We had a portfolio company turn-down a $350 million acquisition because they wanted at least $400 million. Consider: When GOAT started it was a restaurant reservation booking app called GrubWithUs … it’s now worth $3.7

Bankruptcy 294

Bankruptcy Bridge Financing Portfolio Angel Investor 294

Gust

SEPTEMBER 29, 2011

Another use of convertible note bridge financing is to make a quick injection of seed capital into a new startup when the investor and entrepreneur already know and trust each other; it’s better than a handshake, but far quicker and easier to complete than a real Series A round.

Finance 178

Finance Term Sheet Preferred Stock Bridge Financing 178

Both Sides of the Table

SEPTEMBER 18, 2014

But founders these days seem strangely unfocused on finance and on terms that could hurt them even though we fought to the death about these same terms 10 years ago. These are all real conversations. What if when you have that conversation you don’t agree? I have them all the time. I’m bored of it. Thanks for asking.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

K9 Ventures

MARCH 23, 2011

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.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

Gust

SEPTEMBER 17, 2014

But founders these days seem strangely unfocused on finance and on terms that could hurt them even though we fought to the death about these same terms 10 years ago. These are all real conversations. What if when you have that conversation you don’t agree? I have them all the time. I’m bored of it. Thanks for asking.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Both Sides of the Table

MAY 15, 2010

Often times when companies raise “bridge” financing (this is money from internal investors. has demonstrated both high user engagement and better than average conversion rates of 1%-3.5% (versus 0.05% for traditional display advertising) for February 2010. We spoke briefly about why. Short answer: no.

Stealth 285

Stealth SEC Advertising Accredited Investor 285

Startup Company Lawyer

JANUARY 11, 2010

I seem to be doing a lot of pre-Series A convertible bridge note financings these days. As I have written previously , I think that convertible notes with even large conversion price discounts (e.g. 50%) or warrant coverage are typically more company-favorable than a Series A financing where a valuation is set.

Angel Investor 39

Angel Investor Valuation Bridge Financing Preferred Stock 39