Late-stage startups tap alternative funding route amid softening valuations

These notes, which will convert into equity at a later date, require no valuation to be ascribed to the startup currently. With desired valuations not coming their way, startups are resorting to these debt instruments to tide over the economic whiplash where cautious investors are demanding better unit economics and a path to profitability.

from Tech-Economic Times https://ift.tt/ZkWTlVq