What Investment Structure Does Lateral Capital Look For?


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.