Pascal's View

JULY 9, 2017

When it comes time to convert the notes, these entrepreneurs face ‘sticker shock’ about their post-financing ownership. The easiest way to do so is via SAFE notes, due to their simplicity, “available online” documentation, no major covenants established to protect the investors, no governance implications at the board level, etc.

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

Up and Running

APRIL 2, 2015

I was really disappointed when I needed my company’s first commercial bank loan to finance receivables of more than $1 million—from well-known distributors no less—and we ended up having to sign a lien on our family home to get the loan. Well, the bank is going to want a lot before they give it to you. Do you find this daunting?

Balance Sheet 60

Balance Sheet SBA Covenant Technical Review 60

Berkonomics

FEBRUARY 8, 2018

We have previously made the case that professional investors demand more in the form of restrictive covenants and lower valuations. This statement could be considered controversial. Now we explore the other side of that coin.

Covenant 97

Covenant Angel Investor Valuation Later Stage 97

Up and Running

SEPTEMBER 26, 2016

For startups and high-growth businesses, as you scale and encounter new milestones and obstacles, you will be faced with the question of how to finance and plan for that growth. Luckily for founders, the ways in which you can finance your startup are varied based on your business model, your preference, your goals, and timeline, and so on.

Covenant 60

Covenant Institutional Investors Balance Sheet Warrant 60

YoungUpstarts

AUGUST 19, 2019

Therefore, you need to, first of all, familiarize yourself with such terms as default, loan-to-value ratio, financial covenants, balloon payment, and personal guarantee among many others. It gives businesses a chance to attract finances with the support of micro-lenders. Arrange Future Business Loan Repayment.

Entrepreneur 147

Entrepreneur Covenant Business Plan Finance 147

Up and Running

AUGUST 6, 2014

Companies seeking financing to maintain and grow their business will often look first to traditional unsecured bank loans, since that is usually the least costly form of borrowing available. Thus, the bank will not finance their further growth. Do not have a sufficiently high credit rating.

Covenant 85

Covenant Finance Operations Small Business 85

Berkonomics

AUGUST 21, 2013

Venture or angel-financed companies with plenty of working capital sometimes are immune to this need for some time into their growth, but at some point it will become clear that the cheapest form of finance is not equity in a growing enterprise.

Covenant 61

Covenant Warrant Dilution Intellectual Property 61

Up and Running

APRIL 8, 2013

As mentioned, debt, particularly term debt, is usually the cheapest form of external financing a company can obtain. Look for the future installment on financing options which will cover the growing area of alternative options to debt and equity. To learn more about revenue-based finance and Lighter Capital, click here.

Equity 82

Equity Covenant Venture Capital Finance 82

Lightspeed Venture Partners

DECEMBER 10, 2012

Banks often have operating covenants for their loans that require the company to be hitting plan, or close to it. These firms typically charge more than banks and have higher warrant coverage, but have fewer restrictions on the use of capital, no covenants, and will often lend more than a bank will. Fat Ass Fudge.

Covenant 156

Covenant Warrant Southern California Los Angeles 156

Berkonomics

FEBRUARY 9, 2010

We have previously made the case that professional investors demand more in the form of restrictive covenants and lower valuations. This statement could be considered controversial. Now we explore the other side of that coin.

Covenant 59

Covenant Angel Investor Valuation Later Stage 59

BeyondVC

JUNE 11, 2007

In the last six months, we have augmented some of our existing venture financing with venture debt as the market has become quite competitive which means pricing and terms are getting more attractive for all of us. The trick for entrepreneurs is to look at bringing on debt concurrent or soon after your close of equity financing.

Intellectual Property 60

Intellectual Property Covenant Warrant Equity 60

Gust

OCTOBER 26, 2011

As we conclude our convertible note financing series, there are assorted terms commonly seen in term sheets and deal documents that are worth touching on briefly. The Note Purchase Agreement and Convertible Promissory Note are essential documents for any convertible note financing.

Finance 79

Finance Term Sheet Covenant Accredited Investor 79