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OK, so in practice, what happens if the company can't raise a round? Do they just return what they can to the fund and close up the doors?
by sachinag 16y ago
OK, so in practice, what happens if the company can't raise a round? Do they just return what they can to the fund and close up the doors?
- yokumtaku 16y agoThe note stays outstanding. Generally speaking, there's no good reason for the investor to want to convert into equity, as debt is better in a bankruptcy situation. Some companies might return money to investors before shutting down.