mezzanine financing

Definition

Late-stage debt or hybrid securities used to bridge the gap between venture rounds and an exit. It's called mezzanine because it sits between the ground floor (equity) and penthouse (IPO).

Example Usage

Rather than do a messy Series D, we raised $20M in mezzanine financing to fund operations until the IPO window opened.

Origin

Real estate finance term referring to intermediate capital structures, adapted to venture capital

Fun Fact

Mezzanine financing often carries warrants or conversion features, making it expensive capital that only makes sense when you're confident about exit timing.

Source: Corporate finance and capital structure terminology

Related Terms

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down dilution

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Venture funds started by former Tiger Global partners or investors, inheriting their aggressive growth-at-all-costs investment philosophy. They're the offspring that learned well from their parent's playbook.

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venturer

A fancy term for someone who invests in or undertakes risky business ventures, particularly in the startup ecosystem where optimism meets capitalism. These bold souls throw money and energy at unproven business ideas, hoping to strike gold before bankruptcy strikes them. It's like being an explorer, except instead of discovering new lands, you're discovering new ways to burn through Series A funding.

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down-round

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Seed Round

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lever

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