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Sounds like the convertible note would discourage a down round and end up making investors less as more companies fold knowing their equity is about to get most
by robryan 14y ago
Sounds like the convertible note would discourage a down round and end up making investors less as more companies fold knowing their equity is about to get mostly taken by investors.
- simonbarker87 14y agoThat's a genuine possibility, I guess it is an upside for the founders. They can see they equity is going to disappear and can take the out rather and accept the huge equity loss - although convertible loan is higher up the debt chain so the VCs will still get a chunk back