Gust

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Series Seed or Convertible Note? Which one is more founder friendly? Which one do investors prefer?

Gust

That said, the primary entrepreneur-friendly reason for doing a Convertible Note (and the reason that no serious investor under regular circumstances will therefore do an uncapped note) is: The valuation negotiation is put off until the next round. million valuation provided by the 20% discount of the note.

Valuation 150
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How does Convertible Debt work?

Gust

So, if I were just going to buy stock in your company today, we would agree on a valuation today, I’d give you the money today, you’d give me the appropriate percentage of the company’s stock, and we’d be all set. But that’s NOT what we’re doing.

Valuation 117