article thumbnail

Should you raise on convertible notes or do an equity round?

Hippoland

A reader named Turner Dean recently asked me whether it’s better to raise seed money on convertible notes or straight-up equity. In general, I’m a big fan of convertible notes or convertible securities for seed stage founders. Flexibility With an equity round, there’s a specific amount of money you are raising.

Equity 48
article thumbnail

How to Fund a Startup

www.paulgraham.com

A lawyer I asked about it said: When the company goes public, the SEC will carefully study all prior issuances of stock by the company and demand that it take immediate action to cure any past violations of securities laws. It wasnt because they werent accredited investors that I didntask my parents for seed money, though.

article thumbnail

Which language should my startup use?

www.reincubate.com

Despite what some vendors may say, all languages scale, and its hard to argue that one language is fundamentally less secure than another. Seed money gets invested on something that shouldn’t be in use, rather than something provided by an off-the-shelf framework which won’t tie the business to a particular agency.