Should I Raise Debt or Equity?

If you raise convertible debt for a seed round, you should negotiate simple and short documents, close quickly and cheaply, and maintain your options for the Series A. But first, determine if you should raise debt or equity—debt is better for small financings with small discounts.


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Babak Nivi

Babak Nivi is a co-founder of AngelList andVenture Hacks. Previously, he was an entrepreneur-in-residence at Bessemer Venture Partners and Atlas Venture. He has worked on startups including Songbird, Grockit, and Kovio. He went to school at MIT where received 2 patents and published in Science.

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Filed Under:
Collection: Funding
Category: Funding Options & Sources