CRV QuickStart == CRV QuickMarketing

It’s nice that Charles River Ventures is getting some press for offering loans to early-stage companies, but this is more of a marketing exercise than a financial one. Most venture firms have been offering convertible notes for ages — yes, sometimes even at the seed stage — so forgive me if I don’t get too worked up about CRV getting a little press for the practise.

[Update] Tim has some good comments here, including a useful perspective from Bryce at OATV.

Related posts:

  1. No-one Does a Second Seed Fund
  2. Is the VC Seed Pool Really Shrinking?
  3. Meta-IPO Journalism
  4. Raising Money with Meebo
  5. Fox’s Levinsohn on Seed Media

Comments

  1. Ian says:

    If that is the case why does this seem like something new? It is not something I have heard specifically mentioned before, personal ignorance aside.
    While I have heard of negotiating converible debt rather than using equity for funding, is that the same as having a dedicated product aimed directly at this market (seed stage, prototype build out)?
    Any pointers to others offering this kind of product would be interesting to hear about.

  2. Brian says:

    Paul,
    It is certainly not something new that a VC would offer a bridge note to Series A … however, I do think the new here is that they formalized the process. Also, that they dropped the B/S of trying to tie it to a Series A valuation and terms.
    I posted here on the topic, and linked to several others that offered interesting perspective on the CRV program.

  3. Alan says:

    You’re missing the big picture, theyve formalized and streamlined a process for getting seed investments done. In the past when venture firms did seed investments, they were more as one offs or for “friends of the firm”.
    I also think a big part of this is the fact that they have made the standard terms public on their site. Reduces the amount of information asymmetry in the negotiation process.