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Terminology

​When you seek financing or investment for your business you typically come across all sorts of words or phrases that mean different things to different people. Below are some of the words we use when investing with companies.

​Equity

Simply defined, Equity is ownership in your business. If you have an LLC then equity equals something called Ownership Interest. If you've set up a Subchaper S Corporation or a C Corporation then equity means actual shares of ownership in your company.

Seed Stage Company

You've come up with an amazing idea for a product or service but you probably haven't formed a company yet and you need some money to get started.

Early Stage Company

You have formed your company and possibly even made some hires and sales. However, you're still at the beginning of company's journey and you need money in order to grow.

Growth Stage Company

You have an established company with employees and growing sales - even if you aren't profitable yet. You need an investment that gets you "over the hump" and to the next level.

Bridge Loan

We consider a Bridge Loan to be very short term loan (1 to 90 days) that allows a company to make it through a lack of cash situation. Bridge loans can have a high interest rate and the full amount (principal + interest) is due on a pre-determined date.

Short Term Loan

Our Short Term Loan covers 91 days to 3 months and carries a lower interest rate than the Bridge Loan. Payments are made semi-monthly or monthly.

Standard Loan

The Standard Loan can cover anything between 1 and 5 years. It offers the lowest interest rate and payments are made monthly.

Convertible Loan

We use the Convertible Loan when companies are unsure about selling equity but need a cash infusion in their business. This loan can be converted into Equity at pre-determined time or when certain milestones are hit or missed.

Equity Investment

​Our preferred method of investment is buying equity in a company. The valuation of the company is established by all parties and control remains with the Founders. We strongly encourage the formation of a Board of Advisors or Directors and typically require 1-2 seats on the board.