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The last bridge loan I'm personally familiar with was a bridge to a fire sale about a year later. The company was sole for pennies on the dollar, screwing all t
by icedchai 4y ago
The last bridge loan I'm personally familiar with was a bridge to a fire sale about a year later. The company was sole for pennies on the dollar, screwing all the original preferred investors (myself include.)
- jiveturkey 4y agoas a preferred investor, how does this “screw” you? even in a situation where the debt is senior, in the VC game it’s generally better to shoot for the moon than to cut your losses. this is simply how the game is played.
- Quarrel 4y agoYep and unbridged the business presumably would have collapsed before the fire sale. It doesn't sound like the fire sale was where it went wrong.
- icedchai 4y agoit went wrong with a CEO that didn't listen to anyone.
- icedchai 4y agoThere was a major down round after the bridge loan, before the "acquisition" (fire sale.) In the end, I got nothing back. Zero.