Jawbone Gets a Loan and a Leash


Jawbone, the San Francisco maker of wearable technology, recently got a hefty $300 million investment from BlackRock, the largest and one of the most trusted asset management companies in the world.

But the investment wasn’t a $300 million cash infusion, I learned recently. According to documents filed in California and to people close to the deal, BlackRock is giving Jawbone, which makes speakers, Bluetooth headsets and fitness trackers, a $300 million loan.

BlackRock’s decision to use debt rather than equity is one way that late-stage investors can protect themselves when backing private, venture-supported companies. Equity investors in private companies rarely get the same financial transparency or shareholder rights that they do with publicly traded companies…

Jawbone Gets a Loan and a Leash

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