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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. Just do a Google search. In general, I’m a big fan of convertible notes or convertible securities for seed stage founders.

Equity 48
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How to Start a Startup

www.paulgraham.com

Googles plan, for example, was simply to create a search site thatdidnt suck. They had three new ideas: index more of the Web, uselinks to rank search results, and have clean, simple web pages withunintrusive keyword-based ads. For example, dating sites currently suck far worse than search didbefore Google.

Startup 105
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How to Fund a Startup

www.paulgraham.com

It wasnt because they werent accredited investors that I didntask my parents for seed money, though. When we were starting Viaweb,I didnt know about the concept of an accredited investor, anddidnt stop to think about the value of investors connections.The reason I didnt take money from my parents was that I didntwant them to lose it.

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The Future of Web Startups

www.paulgraham.com

Larry and Sergey only started Google after making the rounds of the search engines trying to sell their idea and finding no takers. The way to get really big returns is to do things that seem crazy, like starting a new search engine in 1998, or turning down a billion dollar acquisition offer. Ask anyone whos done it.

Web 54
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The Series A crunch is hitting now. Have we even noticed?

pandodaily.com

Firms like Accel and Greylock and Menlo Ventures announced discovery or seed funds, while other firms like Sequoia Capital and Andreessen Horowitz pioneered stealthy scout programs to give entrepreneurs their money, whether they knew it or not. A name like 500 Startups says it all. Pando Daily. PandoMonthly. PandoDigest.