Raney: Opportunistic bridge rounds in top startups benefit VCs and founders
Scott Raney · 20VC: Why It Is Good Company Funding Has Been Down 6 Quarters In A Row, Why Unanimity Does Not Work In VC Decision-Making & Why It Is Dangerous To Be A Spreadsheet Investor with Scott Raney, Partner @ Redpoint Ventures · May 17, 2017 · at 11:47
Scott Raney, Partner at Redpoint Ventures, explains why insider bridge funding for strong startups prior to major milestones creates win-win outcomes.
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“The second time that we see these things applied is, is really opportunistically where, you know, you're very excited about a company. It's doing very, very well. You just think there's an opportunity for the company to hit an additional set of milestones that will set it up for maybe even better and even better financing than it would otherwise, that it's not a company in trouble. It's actually a company doing really well, but there's a, milestone that's six months down the road that could really change the trajectory of the business. And as an investor, I look at it as an opportunity for me to be able to invest more and buy more of a company. And in those situations, I think that that is, you know, potentially a very compelling model and something that's good for both us as investors and the entrepreneurs.”
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