1/ A term used in finance you will start hearing more is a "PIPE", which is a "private investment in public equity." It involves the selling of publicly traded common shares or some form of preferred stock or convertible security to private investors. A PIPE isn't cheap funding.
2/ Use of a PIPE was particularly common during the period after the Telecom/Dotcom bubbles popped. jstor.org/stable/4350425… One type of PIPE to be avoided by any issuer is the aptly named “death-spiral” version, similar to the PIPE issued by eToys in June of 2000. 
3/ PIPE investors can potentially earn a significant premium to market because of the Cash Rule (CR)*
PIPE Investors can also suffer big losses. A PIPE can fund within 7-10 days of receiving commitments. media2.mofo.com/documents/faqs…
*CR: The one who has the cash, makes the rules.
PIPE Investors can also suffer big losses. A PIPE can fund within 7-10 days of receiving commitments. media2.mofo.com/documents/faqs…
*CR: The one who has the cash, makes the rules.
