Why Seed Investors Don’t like Convertible Notes

Most importantly, they split the entrepreneur’s and investors’ incentives – for the subsequent round, the entrepreneur benefits from a higher valuation, the investor from a low one.


(Full Post: http://cdixon.org/2009/08/12/why-seed-investors-dont-like-convertible-notes/


Chris Dixon

Chris Dixon is an investor at Andreessen Horowitz. He was previously the Co-Founder/CEO of Hunch, Co-Founder of Founder Collective, and Co-Founder/CEO of SiteAdvisor.

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Filed Under:
Collection: Funding
Category: Deciding to Raise & Raise Amounts