| This
process generally includes a review of the company's business plan,
financial statements, and financial projections.
The profile of a typical company funded by CrossHill includes the following:
- Experienced management team with equity stake
- Revenues or executed customer contracts under which it will
generate revenues
- Equity fundings that are more than initial seed capital
- Proprietary intellectual property
- Differentiation from its competitors
In reviewing potential bridge opportunities, the principals employ
a due diligence process focused on a determination of the ability of the
borrower to pay back the principal and an assessment of the value of the
collateral. This process generally includes a review of the company's
business plan, financial statements, and financial projections as well
as interviews with the principal executives, customers, and investors.
For companies funded, the time period from the initial review of materials
and meetings with management to closing averages three weeks.
| The
terms and conditions of
the bridge loans are generally as follows: |
| Principal
Amounts |
$300,000
to $3,000,000 |
| Collateral |
Senior Secured |
| Maturities |
Three months to
two years |
| Interest Rates |
10% to 15% |
| Loan Fee |
1% to 2% |
| Warrants |
25% to 75% of the
total loan commitment |
| Exercise Price |
Lower of current
price per share or price per share of next equity round |
| Cashless Exercise
Feature |
Yes |
| Time to close |
Three weeks |
|
