Top 6 mistakes companies make when raising venture debt
We’ve seen all the mistakes in the book when it comes to bringing leverage onto early-stage companies. But here are the top mistakes we see founders make over and over - watch out for number three in particular!Raising too much money - “Give me as much as possible” vInstead, ask for 25-40% of equity raise or 3-6 months of runway Not diligencing the reputation of the lender Optimizing for cost instead of flexibility Negotiating too short of a term & interest-only period Treating Venture debt as a bridge loan Bad communication with the lender after the deal