

A-Round Valuations Down 25-50% While B- And C-Rounds Non-Existent - fnazeeri
http://www.altgate.com/blog/2008/12/around-valuations-down-2550-while-b-and-crounds-nonexistent.html

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pg
"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.

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fnazeeri
If it's de facto equity, then it skirts around my warning...

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pg
I'm not sure what you mean by "skirts," but your advice is wrong as written.

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fnazeeri
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.

