Venture Capital – The New Paradigm
CEOs looking for money these days are telling investors that they don't want it all at once, they now want to raise money a little at a time, with each piece tied to predetermined milestones. By doing so, they believe they can keep the company focused on meeting goals and objectives in a timely fashion, which then supports and justifies the need for additional capital. Raising money in "tranches," or stages pegged to specific milestones, is not a new strategy, but has become a popular way to raise money in a difficult economic environment. Private capital investors, especially those burned…