11–20 of 80 posts
From their FAQ ( http://oxygenaccelerator.com/accelerator/faqs/ ): When do I have to pay the pre-seed funding back? Don’t worry, we really don’t want you to hand over the keys to your house or car – this is a soft loan. Our interest is in your success and therefore will only look for the loan to be repaid when it makes sense for your business. This will be done on a case-by-case basis.
Earlier quoted context omitted.
It doesn't say anything about not having to pay it back if you don't reach profitability. Their answer to "Do I have to pay back the pre-seed funding?" is "Yes".
Did you stop reading right there? Here's the next line - > When do I have to pay the pre-seed funding back? Don’t worry, we really don’t want you to hand over the keys to your house or car – this is a soft loan. Our interest is in your success and therefore will only look for the loan to be repaid when it makes sense for your business. This will be done on a case-by-case basis. It makes it sound like the loan is to t…
And the structure isn't necessary to meet the stated goal of an "evergreen" fund, as equity returns on successful venture should fill that need.
It's an odd structure, at best.
Earlier quoted context omitted.
It doesn't say anything about not having to pay it back if you don't reach profitability. Their answer to "Do I have to pay back the pre-seed funding?" is "Yes".
Did you stop reading right there? Here's the next line - > When do I have to pay the pre-seed funding back? Don’t worry, we really don’t want you to hand over the keys to your house or car – this is a soft loan. Our interest is in your success and therefore will only look for the loan to be repaid when it makes sense for your business. This will be done on a case-by-case basis. It makes it sound like the loan is to t…
Earlier quoted context omitted.
It doesn't say anything about not having to pay it back if you don't reach profitability. Their answer to "Do I have to pay back the pre-seed funding?" is "Yes".
Did you stop reading right there? Here's the next line - > When do I have to pay the pre-seed funding back? Don’t worry, we really don’t want you to hand over the keys to your house or car – this is a soft loan. Our interest is in your success and therefore will only look for the loan to be repaid when it makes sense for your business. This will be done on a case-by-case basis. It makes it sound like the loan is to t…
Earlier quoted context omitted.
Did you stop reading right there? Here's the next line - > When do I have to pay the pre-seed funding back? Don’t worry, we really don’t want you to hand over the keys to your house or car – this is a soft loan. Our interest is in your success and therefore will only look for the loan to be repaid when it makes sense for your business. This will be done on a case-by-case basis. It makes it sound like the loan is to t…
It certainly _sounds_ that way, but the fine print is what matters. Is the loan a liability of the founder? or the company? Are these super-early ventures actually incorporated? Do they have the savvy to ask these questions? For the sums involved they certainly can't afford much legal advice. And the structure isn't necessary to meet the stated goal of an "evergreen" fund, as equity returns on successful venture shou…
Anyways, yes, you should always read the terms on an important contract very carefully, and here's no different. Probably a bad deal if there's a personal guarantee on the loan.
But assuming the contract is square, I could see circumstances that I'd take this deal in a heartbeat - starting a brand new company with 94% equity, $33k cash in the bank, and a $33k loan with very flexible repayment terms seems like it'd have a much higher chance of success than starting with 100% equity, $0 cash, and $0 debt.
Earlier quoted context omitted.
It doesn't say anything about not having to pay it back if you don't reach profitability. Their answer to "Do I have to pay back the pre-seed funding?" is "Yes".
Did you stop reading right there? Here's the next line - > When do I have to pay the pre-seed funding back? Don’t worry, we really don’t want you to hand over the keys to your house or car – this is a soft loan. Our interest is in your success and therefore will only look for the loan to be repaid when it makes sense for your business. This will be done on a case-by-case basis. It makes it sound like the loan is to t…
From their FAQ ( http://oxygenaccelerator.com/accelerator/faqs/ ): When do I have to pay the pre-seed funding back? Don’t worry, we really don’t want you to hand over the keys to your house or car – this is a soft loan. Our interest is in your success and therefore will only look for the loan to be repaid when it makes sense for your business. This will be done on a case-by-case basis.
From their FAQ ( http://oxygenaccelerator.com/accelerator/faqs/ ): When do I have to pay the pre-seed funding back? Don’t worry, we really don’t want you to hand over the keys to your house or car – this is a soft loan. Our interest is in your success and therefore will only look for the loan to be repaid when it makes sense for your business. This will be done on a case-by-case basis.
- It wasn't at all clear from the website that the money would be a loan - I only got confirmation of this after several clicks to get to the FAQ.
- "Case-by-case" basis? Does that mean if they think someone is going to tank they'll ask for their money back? or perhaps they'll want it back before the next cycle?
- As another commenter has said, the phrase "don't worry" from money lenders makes me feel queasy.
I realise the above points are very touchy-feely but compared to what else is out there, I wouldn't be willing to even consider these guys.
From their FAQ ( http://oxygenaccelerator.com/accelerator/faqs/ ): When do I have to pay the pre-seed funding back? Don’t worry, we really don’t want you to hand over the keys to your house or car – this is a soft loan. Our interest is in your success and therefore will only look for the loan to be repaid when it makes sense for your business. This will be done on a case-by-case basis.
How are such loans handled in the UK regarding liability? I mean, if you have a limited company, does one of the founders have to vouch for it with his personal possessions (as it's often handled here in Germany, for obvious reasons)?
Yes, if you're doing good, they won't be hasty in getting the money back, but they just might kick you on your way down, possibly thus ruining your last shot of getting back up again.