4 ms·
This works fine if you never plan to take outside capital. Otherwise, expect this to be renegotiated back to market standard 4/1 terms if you ever do raise.
by yowlingcat 3y ago
This works fine if you never plan to take outside capital. Otherwise, expect this to be renegotiated back to market standard 4/1 terms if you ever do raise.
- yieldcrv 3y agocorrect, we only took non-dilutive capital, nothing that converts to shares people need to use their imagination
- yowlingcat 3y agoWas your non-dilutive capital debt based and/or have covenants? If not, I'm really curious about what kind of structuring you were able to secure. To your point, non-dilutive capital is clearly superior to dilutive capital except when it involves covenants (which is quite often). I do remember Pipe being in vogue a while back around financing based on futures of subscription fees, but so far that's the only model I can think of that isn't debt with either a) its associated covenants or b) some kind of underwriting box piggybacking off of dilutive capital (venture debt)