
722. Insights: How do you choose the right investment path for your business?
Fintech Insider Podcast by 11:FS
00:00
The Role of Safe Rounds in the Growth of Businesses
At the early stage, I think one thing that's being looked at a lot more are safe rounds. And in today's higher interest rate environment, some of those are going from pure safes to convertibles because people actually want there to be some more time value of money embedded into the structure. But investors who are pushing for higher-pref multiples is to have guaranteed downside protection in the event of a lower valuation exit. There's a lot of pushback on those terms right now and we can get another more restrictive covenants that are at play.
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