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The Truth About Convertible Debt at Startups and The Hidden Terms You Didn’t Understand

Both Sides of the Table

Because convertible debt deals often have both a ‘full ratchet’ and often have ‘multiple liquidation preferences’ “ Yup. The key for entrepreneurs to understand is whether it’s a “full ratchet” or a “weighted average ratchet.” Convertible notes have full ratchets.

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One Simple Paragraph Every Entrepreneur Should Add to Their Convertible Notes

Both Sides of the Table

This is called a “full ratchet,” which is also historically a term that VCs would be crucified for trying to get away with but I’ll avoid talking about that in this post.]. If a VC tried to do this to you on an early-stage deal they would get such a bad reputation that no other VCs or entrepreneurs would work with them.

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Version 2.0 and why Series Seed Documents are better than capped convertible notes

www.seriesseed.com

I hesitate to use a quote from one of the greatest people ever to grace planet earth, and certainly the question of how to structure early stage investment is a laughable cause as compared to the rights that Ghandi (also a lawyer) fought to advance.  I’ve attached version 2.0 I read through the docs, well done.

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Bad Notes on Venture Capital

Both Sides of the Table

At an accelerator … Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago.

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In Q4 2022, founders face tough choices

VC Cafe

The numbers for the first nine months of 2022 show the extent of the slowdown in almost all parts of the Israeli tech economy, except in early-stage. The later the stage, the bigger the impact. In Q3/2022, $2.6 billion were raised in 143 deals. Israeli tech review Q3 2022, IVC Online and Bank Leumi. What is a founder to do?

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Introducing New Lean Startup Practitioners

Startup Lessons Learned

An MVP strategy is the only way to generate the early wins that build credibility with both internal and external audiences, thus allowing me the space to learn, improve, deploy again, learn, improve, and so on. From the beginning, our product teams have been focused on iterating and learning as quickly as possible, with MVPs in common use.

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The VC Market – 2015 and 2016

Rob Go

This is happening because many series A investors are not really investing in early stage companies any more. In fact, many of these investors are not just looking for early product/market fit, but for meaningful scale and growth. Our prediction in October was that this is not a sustainable situation for the early stage market.