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Great post and I'm also not a fan of convertible debt, but for different reasons: As an entrepreneur I don't like the idea of carrying a chunk of debt on the ba
by mmaunder 15y ago
Great post and I'm also not a fan of convertible debt, but for different reasons: As an entrepreneur I don't like the idea of carrying a chunk of debt on the balance sheet at an early stage. I also don't like the assumption of either another funding round or an exit hanging over the company.
- conversionrater 15y agoTrue, there are some negatives for entrepreneurs to use convertible notes. It all comes down to what you're comfortable with and what the investors you want to have are comfortable with. I'd much rather have someone like Fred Wilson invest in priced equity than get convertible debt from an investor who's less experienced, helpful, and connected.