|
|
|
How are companies dealing with the current climate for venture financing?
Many are facing difficult choices between raising capital from existing investors at prices that are disappointing or committing the effort to try to introduce a new investor to price the round. The first is more dilutive and may raise concerns with employees, the second may interfere with important milestones. Possible solutions include bridge financing that is priced at a discount to the next round or ratchet mechanisms that have more favorable initial pricing which will be reduced if future milestones are not achieved.
|
|
