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?
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.
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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?
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.
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.
Up and Running
JUNE 25, 2014
The cost: it’s much more profitable for traditional lenders to do a two million dollar loan, or a three million dollar loan than doing a $150,000 loan or $100,000 loan. That’s why for these reasons, some of the banks are and traditional financing sources are not as focused on the small business market. Hopefully that does. Scott: Okay.
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.
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