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Convertible Debt: Worst Form Of Seed Financing — Except For All The Others

Gust

Angel investors don’t expect to get repaid, nor do they really want to get repaid; the return on their investment, if the startup proves a success, will come in conversion to equity followed by an eventual liquidity event (sale or IPO of the company), with a return of at least 5x or 10x the initial investment if all goes well.

Finance 134
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US Economic Risks (Sept 2010): Impact on Investors & Entrepreneurs

Both Sides of the Table

Personal balance sheets are still stretched: The problem in the US starts & ends with “consumerism” that was fueled by artificially high real estate prices, which drove up spending and the stock market. The housing market is not recovered : Sales in existing homes in the US fell 27.2% I doubt they will ever catch up.&#.