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	<title>Business Destination &#187; politics</title>
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		<title>Venture Capital Financing: Structure and Pricing</title>
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		<comments>http://www.airsd.com/venture-capital-financing-structure-and-pricing.html#comments</comments>
		<pubDate>Sun, 29 Nov 2009 11:51:17 +0000</pubDate>
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				<category><![CDATA[Finance]]></category>
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		<description><![CDATA[A venture financing can be structured using one or more of several types of securities ranging from straight debt-to-debt with equity features (e.g., convertible debt or debt with warrants) to common stock. Each type of security offers certain advantages and disadvantages to both the entrepreneur and the investor. The characteristcs of your situation and current market forces will impact the type and mix of security package that is right for you. Types of Securities Senior debt: Which is usually for long-term financing for high-risk companies or special situations such as bridge financing. Bridge financing is designed as temporary financing in cases where the company has obtained a commitment for financing at a future date, which funds will be used to retire the debt. It is used in construction, acquisitions, anticipation of a public sale of securities, etc. Subordinated debt: Which is subordinated to financing from other financial institutions, and is <a href="http://www.airsd.com/venture-capital-financing-structure-and-pricing.html">Read the Rest...</a>]]></description>
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