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Revenue-Based Investing: A New Option for Founders who Care About Control

David Teten

John Borchers, Co-founder and Managing Partner of Decathlon Capital, claims to be the largest revenue-based financing investor in the US. I asked Brian Parks, Managing Partner, Bigfoot Capital, about the impact of RBI on traditional VC. However, according to Bryce Roberts, co-founder of Indie.VC, only 0.6%

Revenue 60
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Startups and VCs Should Avoid “Pier” Funding

Both Sides of the Table

They trust the judgment of the VCs to source, finance, help manage and then create some sort of exit for the investments that they make. You get the bridge in place so you breathe a sigh of relief that you’re going to live to fight another day but suddenly you because overly cautious.

Startup 290
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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. AdReady – Develops software tools and management platform that assists content publishers and ad agencies with the creation of display ads. We spoke briefly about why. Short answer: no. Primarily targets SMBs.

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

Professor VC

In cases where it is truly a bridge financing (i.e. 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. So when does convertible debt make sense?

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Know the Mindset

ithacaVC

It may explain why Fund Y tries to protect itself, via deal terms, from pay to play provisions that would kick in with respect to future financings. Fund Z may not be a typical VC, but rather part of a larger organization whose underwriting criteria require the onerous terms in the given situation. That is important.

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The Basics of Small Business Loans [WEBINAR]

Up and Running

They’ll look at the management of the business and who the people are that are applying for the loan, what their experience is. They’ll look and see, is there any additional collateral that can be used to finance this particular loan? From a qualification standpoint, the banks are all going to have different qualifications.