Redeye VC: Bridge Loans vs. Preferred Equity

• http://redeye.firstround.com/2006/04/bridge_loans_vs_1.html

I, like most investors, have a strong point of view on the topic — and wanted to share my thoughts.

In general, I have a strong preference for Preferred Equity. While there are a few circumstances where I would go with a Convertible Note (which I’ll outline later), I believe that:

* Preferred equity better aligns the interest of the Investor and the Entrepreneur.

• http://redeye.firstround.com/2006/04/bridge_loans_vs_1.html