2 resources from Airtree Ventures (Open Source VC) we point founders to, and the questions each answers.
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Why we picked it
The best plain-English guide to when venture debt is a smart accelerant versus a trap. It gives the rules our answer leans on: take it right after an equity round when your bargaining power is highest, keep repayments under about 20 percent of opex, and model the covenants during the term sheet stage so you know your buffer. If your revenue swings or your runway is under 12 months, this piece tells you to walk away.
Venture debt is calibrated to your last equity raise (roughly 25-35 percent of the round), so it extends runway without adding dilution, but only after you have proof of traction
Breaking a covenant can trigger premature default, so model covenants before signing, not after
It is dangerous precisely when you need it most: high burn, sub-12-month runway, or unpredictable cash flow means you should not be borrowing
Why we picked it
Written by a VC for early-stage founders, it explains what light-touch seed diligence actually is: at seed the room skews qualitative (story, market, product, early metrics) while growth-stage rooms go quantitative, so you are not expected to have the paperwork a Series A demands. It also gives the practical mechanics, folder structure, naming, and having it ready before meetings start rather than trickling documents out.
Seed diligence is deliberately lighter: the room leans on narrative (overview, market, product, early traction) rather than the exhaustive legal file a later round requires
Have the room ready before your first pitch, drip-feeding documents mid-process signals disorganization and kills momentum
Organize by intuitive folders with clean naming and track engagement (DocSend-style) so you know which investors are actually reading
