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A-Round Valuations Down 25-50% While B- And C-Rounds Non-Existent

• pg 18y ago
  "If you're an entrepreneur, you should fight like hell to avoid bridge loans, venture debt, convertible debt or any other form of leverage. " This is wrong. While debt funding is usually bad for startups, there is a type of convertible debt round that is really a de facto equity round, structured as debt because it makes the paperwork easier.
  • fnazeeri 18y ago
    If it's de facto equity, then it skirts around my warning...
    • pg 18y ago
      I'm not sure what you mean by "skirts," but your advice is wrong as written.
      • fnazeeri 18y ago
        Skirt –verb (used with object) 10. to lie on or along the border of: The hills skirt the town. 11. to border, wrap, or cover with a skirt or something suggesting a skirt in appearance or function. 12. to pass along or around the border or edge of: Traffic skirts the town. 13. to avoid, go around the edge of, or keep distant from (something that is controversial, risky, etc.): The senator skirted the issue. 14. to remove low-grade wool and foreign matter from (the outer edge of fleece). –verb (used without object) 15. to be or lie on or along the edge of something. 16. to move along or around the border of something.
        • deleted 18y ago
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