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Bad Notes on Venture Capital

Both Sides of the Table

And now I have to explain to team that they’re taking more dilution than they expected if we do a down round. A down round? Convertible notes were previously used primarily for “inside rounds” in which the existing investors provide you with bridge financing to get to the next round.

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Bad Notes on VC

Gust

And now I have to explain to team that they’re taking more dilution than they expected if we do a down round. A down round? Convertible notes were previously used primarily for “inside rounds” in which the existing investors provide you with bridge financing to get to the next round.