An ordered reply. I personally do not care note versus not, but am friendly with many angels who do and think they have great points. 1. Notes are worse for fo

An ordered reply. I personally do not care note versus not, but am friendly with many angels who do and think they have great points. 1. Notes are worse for founders in most cases. Manu outlines why quite well. Misalignment, downside protection only for investors w/ a cap, liquidation preference, callable debt that can kill companies. 2. Many of the best seed investors do not do notes anymore, so they're not really allowing it. Founders appear to be using notes because of the opinions of a few people, mostly investors themselves. The same bias should apply there. 3. I agree here, but then someone should come up with standard docs with no strings (kinda like YC's Series AA docs). It will be a bit pricier but not much. See Fred Wilson's post today. Most founders go with notes because someone they trust has told them to not because they have thought it out. And that's fine, but especially lately I continue to hear more stories where founders have gotten screwed by notes. In particular I recently heard about an Angel calling in their debt and killing a Series A. That doesn't seem like what's best for the founders.