assuming that you can repay it. usually you've spent it and therefore you're doing that next priced round. I'm not sure who decides whether it gets repaid or co

assuming that you can repay it. usually you've spent it and therefore you're doing that next priced round. I'm not sure who decides whether it gets repaid or converted.. I recommend you to read up a bit on that. However, if you're not going to convert it into equity it may not be interesting for a seed investor to invest. In that case you should just borrow money from a lender and don't bother with seed investors at all. YC has recently introduced Safe, an alternative to convertible debt: http://techcrunch.com/2013/12/06/yc-safe/ http://techcrunch.com/2013/12/06/yc-safe/ It's convertible debt except it never gets repaid, always converts into equity at some point.