What Investment Structure Does Lateral Capital Look For?

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We prefer priced rounds of Preferred Equity. We will consider Convertible Preferred Debt investments with discounts versus the next priced round and pre-discount caps in our valuation range. In other words, we would invest $100,000 in a Convertible Note with a 20% discount to the next round over $2MM, a 10% interest rate and a $3.5MM cap on conversion. We do not invest in common stock or SAFE notes. However, we will look at Royalty-Based Notes with equity-level IRRs (25-30%) and we are open to other kinds of venture debt, with warrants to deliver equity-type returns.

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