The Startup Magazine

JULY 4, 2024

Managing Cash Flow Difficulties For start-ups, managing cash flow is a perennially talked about issue, with a run rate of operational cost often running ahead of the revenue generation, especially in the early days to stay afloat.

Bridge Financing 111

Bridge Financing Startup Finance Revenue 111

David Teten

AUGUST 19, 2019

The idea is for us to take advantage of a cost/expense that our borrowers are already incurring (credit card fees) and structure an investment that truly aligns our interests. Feenix focuses solely on providing longer term growth capital to healthy companies looking to expand.

Revenue 60

Revenue Term Sheet Founder Technical Review 60

Both Sides of the Table

SEPTEMBER 18, 2014

There are a million ways to do quick, easy, low-cost rounds with prices. 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. My colleague: Whoa. Is there ever a situation where a convertible note is a good idea?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Gust

SEPTEMBER 29, 2011

Given that convertible debt financing has become the de facto standard for small (<$1MM), early stage deals in recent years, I thought I would write a primer on the elements of a term sheet and definitive documents for entrepreneurs looking at the earliest stage financing rounds. Let’s take it from the top: Why convertible notes?

Finance 178

Finance Term Sheet Preferred Stock Bridge Financing 178

Both Sides of the Table

MAY 23, 2010

The industry jargon for convertible debt is a “bridge loan&# or “bridge financing.&# It’s called a bridge loan because it’s meant to provide enough capital to bridge you from your last round of funding until your next round of funding.

Startup 290

Startup Burn Rate Warrant Bankruptcy 290

Gust

SEPTEMBER 17, 2014

There are a million ways to do quick, easy, low-cost rounds with prices. 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. My colleague: Whoa. Is there ever a situation where a convertible note is a good idea?

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

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