5 ms·
Originally posted and more useful title: "How ego and misunderstanding sabotage convertible notes"
by blahedo 13y ago
Originally posted and more useful title: "How ego and misunderstanding sabotage convertible notes"
- kevinastone 13y agoI'd suggest the title: Cap Trap drives to the root problem. The fact that the convertible note cap has become the pseudo-pricing of the round, creates considerable contention between angel investors and founder, which compromises the major benefit of convertible notes to raise money quickly. Obviously ego and/or misunderstanding can acerbate this issue, but ultimately, it's the focus on the cap number that introduces many of the complications of a priced round.