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Tom Brady-Backed Hero Bread in Talks to Raise Convertible Note

Tom Brady gestures to fans during Buccaneers Training Camp in Tampa, Florida on July 27.

Tom Brady gestures to fans during Buccaneers Training Camp in Tampa, Florida on July 27.

Photographer: Julio Aguilar/Getty Images

Hero Bread, which makes low-carbohydrate loaves, tortillas and buns, is in talks to raise a convertible note, according to a person with knowledge of the matter, making it the latest startup to seek non-traditional funding as private markets sputter.

The note is poised to convert at either a $400 million valuation or a 20% discount to the company’s next funding round, said the person, who asked not to be identified because the talks aren’t public. A representative for San Francisco-based Hero Bread declined to comment.