the Funding advance note
Fundraising can drag on for a long time. It can fall through without warning and it costs dearly in terms of your most scarce resource — operational focus.
We offer one innovation that can help: the "Funding Advance" convertible note.
In short, we advance a portion of your round in the form of a convertible note. You can pay it back from the proceeds of your normal round once it closes. You pay minimal interest and instead we get some warrants (a form of equity similar to options).
If your round should fall through, the note simply converts to your existing common stock at a set valuation. You can think of it as insurance against fundraising difficulties.
You draw against our total commitment on an "as needed" basis. That way, you never make the mistake of selling too much equity too early.
If a funding advance can help your startup, tell us more and let's discuss it.