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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 contrast, if you do an equity round, you as the founder will often have to pay $20k-$50k in legal bills. Flexibility With an equity round, there’s a specific amount of money you are raising.

Equity 48
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How to Configure Your Startup Team

Both Sides of the Table

But not anal if one founder who shares equity graciously with early employees who are treated as “co-founders” My idea startup team is heaving on tech personnel but also has strong product management. PM’s are underrated in Silicon Valley these days. For the wrong reasons.

Cofounder 388
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Who are the Major Revenue-Based Investing VCs?

David Teten

This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. We have a special program if you are pre-seed and need product development.

Revenue 60
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Practical Strategies For Starting A Business

Duct Tape Marketing

Well, Steve Hoffman (02:34): First of all, I did three venture funded startups in Silicon valley and two bootstrap startups. Because you can say anything you want, but if, and you can build the best product you want, you could spend year building like the most perfect product with all the features and no bugs or whatever it is.

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10 Tests of Your Modern Entrepreneur Lingo Savvy

Startup Professionals Musings

See how many you have personally experienced already, or are currently mentioned in your business plan: Crowd-sourcing equity. Sites like KickStarter have for years offered rewards and pre-sales for crowd investments, but real equity won’t be legalized until sometime this year for people other than accredited investors.

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When It Comes To Entrepreneurship, Age 40 Is The New 20… And Always Has Been

YoungUpstarts

Instead, he would take his evident talent to Silicon Valley. People in big companies see innovation through the lens of new product development. If you’re nearing 40, you’ve probably paid off your student loans, maybe have equity in a house and comfortable savings safety net.

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This Week in Venture Capital – Episode 4

Both Sides of the Table

The investment will be used for product development initiatives. Summit is a hugely respected firm in Silicon Valley and a long-term “institution&# but they’re better known as more of a “private equity&# investor meaning that they do later stage investments in much larger companies that are profitable.