Bridge Loans vs. Preferred Equity (Josh Kopelman)

Josh provides an interesting discussion of when bridge loans / preferred equity are most appropriate.

"The main reason I'm given when people choose convertible notes instead of equity is that "setting a valuation for a seed-round makes it challenging to get a higher valuation for a venture round." In my experience, as long as the venture round occurs more than a few months after a seed-round, this is not the case." ... "This, of course, assumes that the terms for the equity are standard market terms. "