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Hey This is very interesting. Im curious about what the due diligence process looks like to underwrite the loans for these businesses. Is there any research don
by ianbutler 5y ago
Hey This is very interesting. Im curious about what the due diligence process looks like to underwrite the loans for these businesses. Is there any research done into the space the company is in on your end, or is it purely based on their books and projections?
- rchachra 5y agoThanks, for bridge to Demo Day loans we are underwriting the YC program. For seed extension debt-these companies are still young therefore, our analysis is also betting on traction, quality of founders and investors on the cap table. However, for later stage loans we underwrite on the basis of both a top down as well as bottoms up analysis.