Conversion Early Stage Open Source Pre-Money Valuation 
Both Sides of the Table
JULY 23, 2014
pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. I highlighted how these tectonic technical shifts have altered the VC industry in this post: How Open-Source & Horizontal Computing Spawned the Micro VC Market. 2007 was the watershed year.
K9 Ventures
MARCH 23, 2011
Obviously, both the founders and the note holders have the common objective of getting the company funded; but assuming the company is fundable, there is a basic misalignment of incentives when it comes to valuation. The typical fix for this problem is to put in a cap in the note for the pre-money price for conversion.
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