What have been the terms of bridge loans the VC has done within the past two years?
Look for a VC that will explain the situation that led to the bridge loan, give you the terms and explain the outcome that followed. Top tier VCs have nothing to hide. The more you know in advance, the easier it will be for all of you when you get to doing your first bridge loan. • Be aware that angels rarely invest more than once in a startup. They are not deep pocketed VCs, even if they are very rich. Angels are very one time oriented. • Tiny venture firms are reluctant to put in cash to save a startup. Their fifty million dollar fund cannot afford to take such bets. But a five hundred million dollar fund will. • Corporations rarely do bridge loans. Like never. So don’t count on them to follow up on the bridge when you need them to. They will accept dilution and say goodbye, exit the board and start forgetting to answer your emails. BOTTOM LINE: Do your research before putting a VC on your target list for your next round. There are more than two thousand to choose from. You can find
