Two reasonably common examples of vendor financing in the world of tech startups are equipment financing and development for equity. Equipment financing is when a vendor of capital equipment, like servers, agrees to sell you their product and takes a loan or a lease instead of cash. Development for equity is when a third party development firm builds something for you and takes equity in your business (or less commonly, a loan) in return for the development services.
Fred Wilson has been a venture capitalist since 1987. He currently is a managing partner at Union Square Ventures and also founded Flatiron Partners. Fred has a Bachelors degree in Mechanical Engineering from MIT and an MBA from The Wharton School of Business at the University of Pennsylvania. Fred is married with three kids and lives in New York City.